The Karachi Chamber of Commerce and Industry (KCCI) has voiced strong concern over the government’s move to aggressively recover super tax following the Federal Constitutional Court’s recent decision upholding the levy’s legality, warning that abrupt demands could severely disrupt business activity.
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In a statement issued on Wednesday, Karachi Chamber of Commerce and Industry President Muhammad Rehan Hanif said the recovery drive was ill-timed, coming at a moment when businesses were already facing an acute liquidity crunch. He cited high energy tariffs, elevated interest rates, excessive taxation and rising input costs as key pressures weighing on the business community.
Hanif cautioned that requiring large super tax payments in a single tranche could drain working capital and destabilise cash flows across industries. He said such demands, running into hundreds of billions of rupees, would make it difficult for companies to meet routine financial obligations, including salaries, utility bills, raw material imports and bank repayments.
Describing the approach as impractical and unsustainable, he argued that aggressive recovery could further weaken an economy already under strain and risk slowing industrial activity and employment generation.
The KCCI president urged the government to allow businesses to adjust their super tax liabilities against long-pending income tax and sales tax refund claims. He said delays in refund payments had deprived exporters and manufacturers of much-needed liquidity for years, and adjusting these amounts would ease financial pressure while ensuring tax compliance.
KCCI calls on FBR to allow super tax adjustment against refunds
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Alternatively, Hanif called on the authorities to introduce a clear and structured installment facility that would enable taxpayers to settle super tax dues over a reasonable period. Such a mechanism, he said, would prevent operational paralysis, encourage voluntary compliance and protect industrial output.
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The chamber emphasised the need for a balanced approach that safeguards government revenue objectives without undermining business continuity, stressing that sustainable tax recovery depends on maintaining economic stability and productive capacity.