Pakistan’s textile industry has appealed to the Federal Board of Revenue (FBR) to pause the recovery of Super Tax, warning that immediate collection could cripple exports and disrupt industrial operations. The All Pakistan Textile Mills Association (APTMA) has asked the tax authority to first resolve refund and calculation issues before initiating any recovery process.
In a statement issued on Monday, APTMA said textile manufacturers and exporters are facing severe liquidity pressure and cannot afford to pay Super Tax in a single lump sum. The association stressed that pending tax refunds running into billions of rupees have already tied up working capital.
APTMA Chairman Kamran Arshad said the export-oriented sector has been struggling due to weak global demand, high energy costs, and an unfavourable business environment.
“Demanding upfront Super Tax payments will drain working capital and severely affect day-to-day business operations,” he said.
APTMA urged FBR to adjust Super Tax liabilities against long-pending refunds, including income tax, sales tax, TUF, and DLTL claims. Any remaining amount, the association said, should be recovered through business-friendly instalments spread over a reasonable period.
The association warned that immediate recovery worth hundreds of billions of rupees would make it difficult for firms to pay salaries, utility bills, and suppliers, especially for small and medium textile units.
APTMA also raised objections to the calculation of Super Tax under Section 4C, particularly for exporters who remained under the Final Tax Regime until tax year 2024.
“Super Tax for exporters should be computed on imputable income through reverse calculation of tax already paid,” Kamran Arshad said.
He added that the lack of clear guidelines has created uncertainty and increased the risk of disputes. APTMA called on FBR to engage with stakeholders and issue a generic clarification to ensure fair and uniform application of the law.
APTMA warned that failure to provide relief could result in large-scale closures of textile units, leading to lower exports, a shrinking tax base, and mass unemployment across the sector. The association demanded that recovery proceedings be suspended until all issues are resolved.