Karachi, March 4, 2026 – The Federal Board of Revenue (FBR) has issued a tax demand of Rs19 billion against United Bank Limited (UBL), covering income tax and federal excise duty (FED) for past years up to the tax year 2025.
According to official documents and disclosures in UBL’s financial statements, the income tax component of the demand amounts to Rs16.65 billion. The bank has filed income tax returns up to the tax year 2025 (accounting year ended December 31, 2024), which are deemed assessed under Section 120 of the Income Tax Ordinance, 2001.
The FBR issued amended assessment orders for tax years 2003 to 2025, including additional tax demands related to disallowances of provisions made prior to the Seventh Schedule, totaling Rs16.65 billion (compared to Rs16.12 billion in 2024). UBL has filed appeals with various appellate forums challenging these amendments.
“Where relief was allowed by appellate authorities, the FBR has filed further appeals before higher forums, while UBL has similarly appealed cases where relief was denied,” the bank said. The management expressed confidence that these appeals will ultimately be decided in favor of the bank.
UBL also confirmed that tax returns for its Azad Kashmir (AK) and Gilgit Baltistan (GB) branches have been filed up to the tax year 2025, under Section 120(1) read with Section 114 of the Ordinance and in line with the May 2005 agreement with the Azad Kashmir Council. These returns are considered deemed assessment orders under the law.
In addition to income tax, the FBR conducted monitoring for Federal Excise Duty, Sales Tax, and Withholding Taxes covering the period from 2005 to 2019. This exercise resulted in additional addbacks and demands of Rs2,632 million, which UBL has also appealed. The bank remains confident that all pending cases will be resolved in its favor.
UBL emphasized that it is committed to full compliance with Pakistani tax laws while continuing to contest disputed amounts through proper legal channels. Analysts note that while the total demand is significant, UBL’s proactive legal strategy and history of compliance could help mitigate potential financial impact.
This development highlights the ongoing scrutiny of major financial institutions in Pakistan by the FBR, reinforcing the importance of compliance and timely resolution of tax disputes.