ISLAMABAD: The Federal Board of Revenue (FBR) has agreed in principle to provide relief in the payment schedule of super tax by allowing companies to clear outstanding dues in installments until June 30, 2026, industry sources revealed on Tuesday.
The development comes after a series of meetings between senior FBR officials and representatives of the business community, who highlighted severe cash flow constraints, rising operational costs, and economic uncertainty. According to insiders, the FBR chairman showed flexibility and partially agreed to extend the payment timeline to ease financial pressure on businesses.
Installments on case-to-case basis
Sources said the tax authority is willing to facilitate super tax payments on a case-to-case basis. Companies may be permitted to pay in installments, provided that the entire outstanding amount is fully settled by June 30, 2026.
The proposed arrangement is aimed at reducing liquidity stress for companies struggling with inflation, high borrowing costs, and sluggish market conditions.
Court verdict strengthened FBR’s position
In January 2026, the Federal Constitutional Court upheld the legality of super tax collection, reinforcing FBR’s authority to initiate recovery proceedings. Following the verdict, the tax machinery intensified enforcement measures to accelerate revenue collection.
However, the aggressive recovery drive sparked strong reaction from business leaders, who warned that immediate and lump-sum payments could disrupt operations, affect working capital, and potentially lead to layoffs.
Industry representatives subsequently approached Prime Minister Shehbaz Sharif, seeking government intervention and a more flexible payment framework.
High-level meeting reviews relief options
On Monday, Prime Minister Shehbaz Sharif chaired a high-level meeting in Islamabad to review the super tax situation. The meeting was attended by key cabinet members, including the deputy prime minister, law minister, minister of state for finance, and the FBR chairman.
Officials discussed various proposals to balance revenue collection targets with the need to protect business stability and economic growth.
Notification awaited
While FBR officials have assured business leaders that the issue will be resolved amicably, no formal notification has yet been issued. Sources indicated that a final policy decision is expected after internal consultations and necessary approvals.
The installment-based relief, if formally notified, is being viewed as a significant step toward improving tax compliance, restoring investor confidence, and strengthening coordination between the government and the private sector.
