Sec 7E, Super tax under Sec 4C: FBR yet to devise mechanism for refunding taxes: Butt

Waheed Shahzad Butt, head of the LTBA Public Interest Litigation Committee, says the FBR has yet to set out a way to return amounts collected under Section 7E and Super Tax under Section 4C, according to Business Recorder. The demand follows Federal Constitutional Court rulings that struck down Section 7E in full and declared it void from inception, setting aside all related notices and proceedings. The levy hit properties valued above Rs25 million, charging five percent of the fair market value FBR had assessed.

The court upheld Super Tax under Section 4C but carved out some exempt gains, so the charge cannot apply to property sold after the prescribed holding period, inherited property or other exempt income. Butt said his committee had written to the FBR chairman over three months earlier, asking for a formal refund procedure, but the board has not released any guidance, claim form or designated forum. He proposed that such amounts be set off against liability for 2026 through the annual return.

He warned that the delay leaves the FBR open to more legal action, including complaints lodged with the Federal Tax Ombudsman. He also asked the board to communicate the procedure without delay and ensure uniform treatment of claims across the country.