Karachi, February 17, 2026 – The Karachi Tax Bar Association (KTBA) on Tuesday urged the Federal Board of Revenue (FBR) to immediately suspend recovery of super tax until the detailed judgment of the Federal Constitutional Court is formally issued.
In a letter addressed to FBR Chairman Rashid Mahmood Langrial, KTBA President Muhammad Mehmood Bikiya expressed serious concerns over the ongoing recovery proceedings under Sections 4B and 4C of the Income Tax Ordinance, 2001, following the court’s short order dated January 27, 2026. He emphasized that recovery actions should only be initiated after the release of the detailed verdict, as connected and consequential matters can be properly adjudicated only thereafter.
KTBA highlighted reports from its members that tax officials are aggressively pursuing recovery without providing the mandatory 30-day notice period prescribed under Section 137 of the Ordinance. The association termed such actions premature, unlawful, and in violation of statutory provisions and binding judicial precedents. It called upon the FBR to issue immediate instructions to field formations to halt all premature recovery proceedings.
The association further pointed out that taxpayers are being denied adjustment of their super tax liabilities against excess tax payments and pending refunds, despite duly filed claims awaiting verification. KTBA urged the FBR to ensure that recoveries are made only after appropriate adjustments and expedited processing of refunds, in line with Sections 138 and 140 and Chapter XVI-A of the Income Tax Rules, 2002.
Additionally, KTBA requested facilitation for taxpayers intending to file revised returns to admit super tax liability along with adjustment claims. It also welcomed media reports suggesting installment-based payment facilities for super tax, terming the move a positive step toward easing liquidity pressures.