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

Govemrnent of Pakistan Revenue Division Federal Board of Revenue *lr* Islanrabad, ,h"t L/*tuly, 2026 NOTIFICATION (Income Tax) S.R.O. l/)-?G) /2026. - In exercise of the powers conferred under section 183 ofthe lncome Tax Ordinance,200l (XLIX of2001), and in supersession of its Notification No. S.R.O. 799(l\12026 dated 4th May 2026, and in pursuance of Cabinet decision in Case No. 4lllPtule-1912026-497 daled 15.06.2026, the Federal Govcmment is pleased to cxempt amount of default surcharge and penalties, payable against the current income tax liabilities, rnentioned in column (3), of the Pakistan International Airlines Corporation Limited (PIACL), detailed as under: S. No.Tax Period Amount (l) (2) (3) 263,821,746I Withholding Tax (Other than Salary) - April to Dec.2024 2 Advance Income Tax (May 2024 to htne 202s) 4,028,821,290 TOTAL 4,292.643,036 Thc above cuffent tax liabilities arc 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 exen.rption 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 dcfined in the Share Purchase and Subscription Agreement between Govemment of Pakistan and successful bidders. ts"ii,*#*-r,"-t Member (Inland Revenue Policy) / Additional Secretary [No. 1(5)R&S/2026]