An audit of the Federal Board of Revenue (FBR) for the audit year 2024-25 has found that Rs.167.9 billion in Super Tax remained uncollected from 1,026 high-income taxpayers across 20 field offices.
Under Section 4C of the Income Tax Ordinance 2001, individuals earning more than Rs.150 million annually are required to pay Super Tax. According to the audit findings cited in the report, the 1,026 taxpayers had failed to pay the tax for the tax years 2022-23 and 2023-24.
The audit found that no legal proceedings had been initiated against the taxpayers, with FBR citing weak monitoring as the reason.
Of the Rs.167.9 billion identified as outstanding, only Rs.48 million had actually been recovered at the time of the audit. A further Rs.1.94 billion had been charged but remained uncollected, while proceedings involving Rs.159.6 billion had been initiated but not finalized. Another Rs.6.3 billion was reported to be tied up in court proceedings.
The Departmental Accounts Committee (DAC) reportedly met five times between July 2024 and January 2025 and directed the recovery of the outstanding amounts on each occasion. However, the audit report recorded no further progress by the time it was finalized.
The findings raise questions about the enforcement of tax obligations among Pakistan's highest earners, particularly when compared with the direct collection mechanisms applied to salaried workers.
The audit's findings place the responsibility on the FBR to recover the outstanding amount and strengthen monitoring and enforcement mechanisms. The Rs.167.9 billion remains a significant outstanding liability, with the next audit expected to indicate whether meaningful recovery has taken place.