Textile Industry Urges FBR to Adjust Super Tax Against Pending Refunds
ISLAMABAD: Pakistan’s textile industry has urged the Federal Board of Revenue (FBR) to allow the adjustment of Super Tax liabilities against long-pending tax refunds, warning that aggressive recovery measures could trigger a severe liquidity crunch and disrupt export operations.
The appeal was made by the All-Pakistan Textile Mills Association (APTMA) on February 2, 2026, following the FBR’s decision to launch an intensified recovery drive for Super Tax dues after the Federal Constitutional Court upheld the levy’s legality. Tax authorities are seeking to recover nearly Rs300 billion through the exercise.
APTMA Chairman Kamran Arshad said textile manufacturers and exporters do not have the financial capacity to pay large tax amounts in a single installment amid high interest rates, elevated energy costs, and slowing export orders. He warned that immediate recovery would drain working capital, making it difficult for mills to meet routine obligations such as salaries, utility bills, and debt servicing.
Industry representatives also highlighted the long-standing refund backlog, arguing that it is unreasonable for the government to demand immediate payments while billions of rupees in income tax, sales tax, and export-related refunds remain unpaid for years. APTMA proposed that any remaining Super Tax liability be converted into manageable installments to ease pressure on businesses.
The textile sector cautioned that sudden fiscal shocks could undermine recent relief measures and weaken Pakistan’s export competitiveness at a critical time, further stressing the need for a measured approach by the FBR.
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