Which Sectors Still Pay Full Super Tax in 2026-27
The relief comes with exclusions
The Finance Act 2026 (Federal Budget 2026-27) delivers two big super tax reliefs: abolition for income up to Rs 500 million, and a reduction from 10% to 8% above that line. But these concessions are not available to everyone. Three sectors are specifically carved out and continue to face full super tax treatment.
The excluded sectors
- Banking — banks and financial institutions remain outside the super tax relief.
- Exploration and Production (E&P) — oil and gas exploration and production companies are excluded.
- Fertilizer — the fertilizer sector continues to pay full super tax.
| Sector | Eligible for 2026-27 super tax relief? |
|---|---|
| Banking | No — full super tax applies |
| Exploration & Production (E&P) | No — full super tax applies |
| Fertilizer | No — full super tax applies |
| Most other sectors | Yes — abolished up to Rs 500M; 8% above |
Why these sectors are treated differently
Super tax was originally designed to draw additional contributions from highly profitable segments of the economy. Banking, E&P and fertilizer are typically capital-intensive and high-margin, and policymakers have chosen to keep them within the full super tax net even as other sectors receive relief. The practical effect is that companies in these industries should not assume any reduction in their super tax exposure for 2026-27.
What excluded companies should do
- Do not book the saving. Forecasts should continue to reflect full super tax, not the abolition or the 8% rate.
- Confirm classification carefully. Group structures spanning multiple activities should determine which income falls within the excluded sectors.
- Maintain provisioning discipline. Keep advance tax and provisions aligned with the full liability to avoid cash-flow surprises.
- Watch for further clarifications. Sector scope can be refined through rules and notifications during the year.
For everyone else
If your company is outside banking, E&P and fertilizer, you generally benefit from the relief — no super tax up to Rs 500 million and 8% above it. Either way, the key is to apply the right treatment to the right income, which depends on accurate financial data.
Stay precise with Zaffre Axon
Whether you qualify for the relief or remain in an excluded sector, correct tax forecasting starts with consolidated, reliable numbers. Zaffre Axon, from Zaffre Tech, unifies payroll, invoices and finance and auto-applies FBR slabs, EOBI, sales tax and withholding from one central configuration. Zaffreaxon gives finance teams a dependable base to model super tax — at full rate or relieved — while Zaffre HRM keeps payroll compliant throughout.
With Zaffretech as your compliance foundation, your team always applies the right rule to the right income.
References: Income Tax Ordinance 2001; Finance Act 2026 (Federal Budget 2026-27); FBR super tax provisions.
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