IMF urges Pakistan to cover revenue shortfall through Super Tax
ISLAMABAD ( WEB NEWS )
The International Monetary Fund (IMF) has urged Pakistan’s government to cover its revenue shortfall by ensuring full recovery of the Super Tax, sources said.
The Federal Constitutional Court (FCC) on Tuesday rejected petitions challenging the Super Tax, dismissing objections related to the maintainability of the case. The court upheld Section 4B of the Income Tax Ordinance, 2001, while declaring High Court judgments concerning Section 4C partially null and void.
The ruling has paved the way for the Federal Board of Revenue (FBR) to accelerate recovery efforts. According to official figures, the FBR recorded a revenue shortfall of Rs335 billion after missing its tax collection target for the first half of the current fiscal year (July–December).
Sources said the IMF and FBR held virtual discussions following the court’s decision, during which the IMF expressed satisfaction over the verdict and pressed Pakistan to meet its tax targets.
The IMF reportedly demanded that all pending Super Tax recoveries be completed within the current month.
According to estimates, Super Tax collections are expected to reach nearly Rs380 billion by June 2026. Of this amount, approximately Rs300 billion is expected to be recovered in the coming days, with an additional Rs80 billion by June 2026.
Officials said that once Super Tax recoveries are completed, the FBR’s revenue shortfall is expected to be eliminated by December.
Sources further revealed that the FBR’s legal wing had completed all necessary groundwork to pursue the Super Tax case in the Supreme Court, adding that there was significant pressure from the IMF to clear the pending litigation.
Under the Finance Bill, Super Tax is levied on large companies at rates ranging from 1 percent to 10 percent, depending on their profitability. The tax will continue to apply to companies earning profits above the prescribed threshold. Authorities have emphasised that the revenue gap will be addressed by increasing tax income rather than introducing new short-term tax measures, including a mini budget.