KTBA raises concerns over Super Tax recovery exercise

KARACHI: Karachi Tax Bar Association (KTBA) has raised serious concerns over the ongoing Super Tax recovery exercise, terming it as premature tax recovery.

In a letter sent to chairman FBR, the KTBA called on the FBR to exercise restraint in enforcement proceedings until a detailed judgement is issued by the Federal Constitutional Court (FCC).

On January 27, 2026, the FCC issued a short order disposing of multiple appeals and petitions filed by taxpayers who had challenged the levy of Super Tax under Sections 4B and 4C of the Ordinance.

In the wake of this order, tax authorities intensified their efforts to recover outstanding Super Tax dues from affected taxpayers. However, the KTBA argued that the short order alone did not provide sufficient legal clarity for full enforcement. The bar urged that recovery of outstanding balances should be deferred until the detailed judgement, as connected and consequential legal matters could only be properly evaluated thereafter.

The KTBA letter said that recovery proceedings are reportedly being initiated in certain cases without providing the mandatory thirty (30) days’ notice period prescribed under Section 137 of the Income Tax Ordinance, requesting the FBR to issue immediate directives halting such unlawful recovery actions and ensuring strict compliance with statutory provisions.

Despite intensified recovery efforts, taxpayers are being denied the right to adjust their Super Tax liability against excess tax payments and pending refund claims already filed and awaiting verification, the letter said. KTBA urged the FBR to direct field formations to allow such adjustments and to expedite refund verification and processing without undue delay.

Copyright Business Recorder, 2026