The Federal Board of Revenue (FBR) has abolished super tax for exporters with income exceeding Rs. 500 million if more than 80 percent of their total turnover is represented by export proceeds realized during the relevant tax year.

The FBR announced the change through Income Tax Explanatory Circular No. 2 of 2026, issued on Tuesday. The amendment introduces clause 104B in Part IV of the Second Schedule of the Income Tax Ordinance.

Under the revised provisions, super tax has also been abolished for persons with income of up to Rs. 500 million, except for those specifically covered by the relevant table. For taxpayers with income above Rs. 500 million who do not qualify for the exporter exemption, the super tax rate has been reduced from 10 percent to 8 percent.

The FBR has also introduced changes to the tax audit process. Under the new provisions, the Commissioner may, with the prior approval of the Chief Commissioner and after giving the taxpayer a reasonable opportunity to be heard, order a re-audit of accounts, revaluation of inventory or determination of actuarial values by professionals selected from a Board-nominated panel.

The authority said the decision to seek such specialized review may take into account the nature and complexity of a taxpayer’s accounts, the volume of transactions, doubts regarding their correctness, the number of transactions or the specialized nature of the taxpayer’s business.

The revised provisions also allow a registered person to object to the nomination of a particular accountant or cost accountant for the additional review.

The FBR has further increased the surcharge payable by persons who are not included on the Active Taxpayers List.

However, an individual can avoid the surcharge conditions by submitting an undertaking to the Commissioner that they will not purchase, acquire or otherwise obtain ownership or beneficial interest in any property for six months from the date of submitting the undertaking.