dated 16.07.2026, regarding Exemption of Default Surcharge and Penalties against Current Tax Liability of PIACL under section 183 of the Income Tax Ordinance, 2001
SRO 1129(I)/2026 is an Income Tax SRO dated 16 July 2026, listed by FBR as "dated 16.07.2026, regarding Exemption of Default Surcharge and Penalties against Current Tax Liability of PIACL under section 183 of the Income Tax Ordinance, 2001".
FBR publishes this SRO as scanned images, so the text below was transcribed by Qanoon Digest from the page images, with tables set out as tables. Check the official PDF before relying on any wording or figure.
Page 1
Government of Pakistan
Revenue Division
Federal Board of Revenue
Islamabad, the 16th July, 2026
NOTIFICATION
(Income Tax)
S.R.O. 1129(I)/2026. - In exercise of the powers conferred under section 183 of the Income Tax Ordinance, 2001 (XLIX of 2001), and in supersession of its Notification No. S.R.O. 799(I)/2026 dated 4th May 2026, and in pursuance of Cabinet decision in Case No. 411/Rule-19/2026-497 dated 15.06.2026, the Federal Government is pleased to exempt amount of default surcharge and penalties, payable against the current income tax liabilities, mentioned in column (3), of the Pakistan International Airlines Corporation Limited (PIACL), detailed as under:
| S. No. | Tax Period | Amount |
|---|---|---|
| (1) | (2) | (3) |
| 1 | Withholding Tax (Other than Salary) - April to Dec. 2024 | 263,821,746 |
| 2 | Advance Income Tax (May 2024 to June 2025) | 4,028,821,290 |
| TOTAL | 4,292,643,036 |
The above current tax liabilities are subject to the final determination, in order to successfully conclude the process for divestment of PIACL to the successful bidder, and to ensure timely execution of the bid documents and satisfaction of terms contained therein.
This exemption shall be subject to the condition that the current income tax liabilities of the PIACL as mentioned above, shall be paid to the Federal Board of Revenue within a period of four years, following a grace period of one year in equal annual installments, after First Completion as defined in the Share Purchase and Subscription Agreement between Government of Pakistan and successful bidders.
[No. 1(5)R&S/2026]
(Sajjad Taslim Azam)
Member (Inland Revenue Policy) /
Additional Secretary
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