May 2026 Tax Update Pakistan — What FBR Actually Issued
This page records FBR's income tax changes in May 2026 — only those found in FBR's own SRO register, its press releases and the Income Tax Ordinance 2001. Each item carries its SRO number or section so you can check it yourself. The end of the page also records what happened after May, up to 23 September 2026.
1. FBR's Income Tax Notifications in May 2026
| Date | SRO | What it is |
|---|---|---|
| 4 May | 799(I)/2026 | Exemption for PIACL from default surcharge and penalties — does not apply to ordinary taxpayers |
| 7 May | 835(I)/2026 | Draft electronic return forms for Tax Year 2026 (individuals, SMEs, AOPs and companies) |
| 11 May | 856(I)/2026 | Draft amendment to rule 80B of the Income Tax Rules |
| 19 May | 876(I)/2026 | Lahore: property valuation entries changed for DHA (Phase VI to XIII), and a new entry for “One Central DHA” |
| 19 May | 877(I)/2026 | Rawalpindi: property valuation entries changed for DHA Phase I to V and DHA Valley |
| 20 May | 879(I)/2026 | Rule 80B final: clause (a) of the registration particulars now reads “number of CNIC, NICOP, POC or foreign passport”; a separate list for INGOs |
Source: FBR's list of Income Tax SROs (fbr.gov.pk/sros), viewed on 23 September 2026. Each SRO's PDF can be downloaded there.
2. TY2026 Return Forms — Draft 7 May, Final 2 September
SRO 835(I)/2026 published the draft return forms for Tax Year 2026 and allowed 7 days for objections or suggestions. The final forms were notified on 2 September 2026 through SRO 1495(I)/2026. Under section 118(3), the return deadline for individuals and AOPs (other than companies) is 30 September 2026.
What is in the new form is covered in our new tax return form guide, and the filing steps in our return filing guide.
3. Property Valuation — Lahore and Rawalpindi (19 May)
Under section 68(4), FBR notifies the “fair market value” of property in different areas. Two SROs came on 19 May: 876(I)/2026 changed the DHA Phase VI to XIII entries in Lahore's valuation notification (SRO 1722(I)/2024), and 877(I)/2026 changed the DHA Phase I to V and DHA Valley entries in Rawalpindi's notification (SRO 1728(I)/2024). These are not new tables for the whole city — only the entries for these areas.
Before that, in April 2026, valuation SROs had already been issued for Islamabad (SRO 644(I)/2026, 16 April), Multan, Bahawalpur, Gujranwala and Faisalabad (21 April) and Sialkot (SRO 662(I)/2026, 22 April).
Effect on tax: under section 68(6), for capital gains (section 37), advance tax under sections 236C and 236K, and section 111, a property's value is not taken as less than the FBR value. Our Property Tax Calculator holds no valuation table — it calculates on the value you enter. So enter whichever is higher: your price or your area's FBR value.
4. FBR's Powers Over Non-Filers — Section 114B
An earlier version of this page said an order to block 5 lakh SIMs came in May 2026. We found no such order in FBR's 2026 press releases or its list of Income Tax SROs, so that claim has been removed. What is certain is the law:
Section 114B — Income Tax General Order
- Who: people who are not on the active taxpayers list but are required to file a return.
- What can happen: the mobile phone or SIM disabled, the electricity connection cut off, the gas connection cut off, and a ban on travel abroad — except for NICOP holders, minors, students, people going for Hajj or Umrah, and further classes notified by the Board.
- Condition: a person can be included in the order only after a notice under section 114(4) has been issued, its date has passed, and no return has been filed (section 114B(4)).
- Restoration: the Board or the Commissioner can order the SIM, electricity and gas to be restored once satisfied that the return has been filed, or that the person was never required to file one (section 114B(3)).
The straightforward way to avoid this is to file your return. Our guide to becoming a filer explains the whole process step by step.
5. Advance Tax — the 15 June Instalment and the Next Dates
The first big date after May was 15 June 2026 — the last quarterly advance tax instalment for Tax Year 2026 (section 147). Under section 147(5), individuals' instalments fall on 15 September, 15 December, 15 March and 15 June; under section 147(5A), AOPs' and companies' fall on 25 September, 25 December, 25 March and 15 June. As of 23 September 2026, the individuals' September instalment has passed, and the one for AOPs and companies is due on 25 September.
Under section 147(2), the section does not apply to an individual whose latest assessed taxable income (excluding certain incomes) is below Rs 1 million. The test is income, not tax liability.
Paid an Instalment Late?
Default surcharge of 12% a year applies under section 205(1A), running from the due date until the date of payment or the return due date, whichever comes first. The detail is in our advance tax guide. To pay, you generate a PSID on IRIS — see what a PSID is.
6. Some TY2027 Non-Filer Rates (From 1 July 2026)
These are not May changes — they are Finance Act 2026 rates in force from 1 July 2026. For a non-filer (someone not on the active taxpayers list), the rates are higher than for a filer:
| Transaction | Filer Rate | Non-Filer Rate |
|---|---|---|
| Cash Withdrawal (§231AB, non-filer only) | Not applicable | 0.8% |
| Amount Remitted Abroad via Card (§236Y) | 0.5% | 1.0% |
| Dividend Income (§150, general case) | 15% | 30% |
Rates from FBR's Withholding Income Tax Rate Card (Finance Act 2026, TY2027) — see how we verify rates. Rates for other sections are on the WHT calculator.
7. What Happened After May (Up to 23 September 2026)
- Budget: the Finance Act 2026 (Act No. XLIII of 2026) received Presidential assent on 26 June 2026 — details in the budget 2026-27 guide.
- Small shopkeepers: the “Special Procedure for Small Shopkeepers” under section 99B — draft SRO 1109(I)/2026 (14 July), final SRO 1166(I)/2026 (27 July). For Tax Year 2026, optional, for individuals whose retail shop has an annual turnover of up to Rs 200 million; people with more than one shop, Tier-1 retailers, jewellery sellers and professional services are excluded.
- Valuation: Islamabad's SRO 644(I)/2026 was further amended by SRO 1335(I)/2026 (7 August), and Quetta was revised by SRO 1444(I)/2026 (28 August).
- Return forms: the final TY2026 forms were notified by SRO 1495(I)/2026 (2 September).
8. Before You File Your Return — Checklist
9. FAQ — FBR Tax Update May 2026
Which income tax notifications did FBR issue in May 2026?
According to FBR's list of Income Tax SROs: on 4 May, an exemption for PIACL from default surcharge and penalties (SRO 799(I)/2026); on 7 May, the draft electronic return forms for Tax Year 2026 (SRO 835(I)/2026); on 11 and 20 May, an amendment to rule 80B of the Income Tax Rules, first as a draft (SRO 856(I)/2026) and then final (SRO 879(I)/2026); and on 19 May, changes to property valuation for DHA areas of Lahore and Rawalpindi (SRO 876(I)/2026 and SRO 877(I)/2026).
Can FBR block the SIMs of non-filers?
Yes. Section 114B of the Income Tax Ordinance empowers the Board to issue an income tax general order for people who are not on the active taxpayers list but are required to file a return. The order can include disabling a mobile SIM, cutting off an electricity or gas connection, and a ban on travel abroad. But a person can be included in the order only after they have received a notice under section 114(4), the date in the notice has passed, and no return has been filed.
If my SIM or electricity connection is cut off, how is it restored?
File your return first. Under section 114B(3), the Board or the Commissioner can order the mobile SIM, electricity and gas connection to be restored once satisfied that the return has been filed, or that you were never required to file one. The law sets no time limit for this.
How do property valuation tables affect my tax?
Under section 68(6), for capital gains (section 37), advance tax under sections 236C and 236K, and section 111, a property's value is not taken as less than the fair market value notified by FBR. If the price you declare is below the FBR value, tax is charged on the FBR value.
What are the quarterly advance tax dates?
For individuals, section 147(5): 15 September, 15 December, 15 March and 15 June. For AOPs and companies, section 147(5A): 25 September, 25 December, 25 March and 15 June. Late payment attracts default surcharge of 12% a year under section 205(1A), running until the date of payment or the return due date, whichever comes first.
Was the Tajir Dost scheme extended to 42 cities in May 2026?
FBR's list of Income Tax SROs has no Tajir Dost notification in May 2026. For small shopkeepers, the 'Special Procedure for Small Shopkeepers' under section 99B came in July 2026: draft on 14 July (SRO 1109(I)/2026) and final on 27 July (SRO 1166(I)/2026). It covers Tax Year 2026, is optional, and applies to individuals whose retail shop has an annual turnover of up to Rs 200 million, with some exclusions.
What changed on this page (23 September 2026)
The earlier version made these claims, which were not found in FBR's records and have been removed: the full activation of an “AI-driven Digital Tax System” in May 2026; an order to block 5 lakh SIMs; the Tajir Dost scheme extended to 42 cities, with Rs 1,000–10,000 monthly tax, a 3-year audit exemption and a 31 May deadline; valuation tables for more than 50 cities; a “debit block” on bank accounts; and SIMs unblocked within 24–48 hours.
Two errors were also corrected: the advance tax condition was given as “Rs 1 million tax liability”, while section 147(2) refers to taxable income; and the page said our Property Tax Calculator had been updated with the new valuation tables, although the calculator holds no valuation table.
Related Tax Guides
Continue learning about Pakistan tax with these authoritative FBR-aligned guides.