ISLAMABAD: The Federal Board of Revenue (FBR) has granted a complete exporter super tax exemption from Tax Year 2027. The exemption applies where realised export proceeds exceed 80% of total annual turnover.
The relief applies to exporters whose income exceeds PKR 500 million, according to FBR Income Tax Explanatory Circular No. 2 of 2026 issued on September 8. The measure was introduced through Clause 104B of Part IV of the Second Schedule to the Income Tax Ordinance, 2001.
The 80% threshold is based on realised export proceeds as a proportion of total turnover, rather than the proportion of taxable income generated from exports. However, exporters failing to meet that condition will remain subject to the general super-tax regime.
Read: FBR July Tax Collection Beats Target by PKR 40 Billion
For other taxpayers, the Finance Act 2026 abolished super tax for income not exceeding PKR 500 million. It also reduced the rate from 10% to 8% where income exceeds PKR 500 million.
The reduced rates do not apply to specified categories. For example, banking companies, persons whose income is computed under Part I of the Fifth Schedule, and taxpayers deriving income from fertiliser sales remain subject to a 10% super tax where applicable income exceeds PKR 150 million.
The revised framework applies from Tax Year 2027 under amendments enacted through the Finance Act 2026.
