FBR Plans Complete Super Tax Abolition Through Phased Cuts

Government Plans Phased Elimination of Super Tax, Says FBR Chairman

The government plans to completely eliminate the super tax through a phased process, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has announced, adding that efforts to gradually abolish the levy have already started following an initial reduction of two percentage points.

Speaking to industrialists during a visit to the Korangi Association of Trade and Industry (KATI), Langrial said the FBR was working to improve the taxation system, resolve business-related difficulties and strengthen engagement with the industrial sector.

According to a statement issued by KATI, the FBR chairman announced plans to establish a dedicated FBR office at the association to help industrialists address tax-related matters in the Korangi Industrial Area.

He also said the FBR help desk would be expanded beyond Karachi to Sukkur. Consultations with relevant stakeholders would also be held to address procedural shortcomings affecting raw material imports.

The chairman assured industrialists that meetings would be arranged to resolve border trade issues impacting the leather industry.

He further discussed improving the effectiveness of the Track and Trace System through collaboration with the pharmaceutical sector, including the possibility of adopting a model similar to the one used by the Drug Regulatory Authority of Pakistan (DRAP).

Langrial said the FBR aimed to facilitate businesses while improving tax administration and transparency. He encouraged industrialists and traders to work with the authority to identify tax evasion and bring businesses operating outside the tax system into the formal economy.

During the meeting, representatives from various industrial sectors highlighted concerns about taxation and administrative procedures. The FBR chairman heard their complaints and issued instructions for addressing them, an approach welcomed by KATI and the business community.

KATI Calls for Stronger Government-Industry Coordination

Earlier, KATI President Sheikh Umer Rehan stressed the importance of closer cooperation between government institutions and Karachi's industrial sector. He said greater involvement from federal ministers and cabinet members could help strengthen economic activity.

He welcomed improved coordination between the FBR and KATI, adding that effective implementation of digitalisation initiatives, the faceless assessment system and other tax reforms could broaden the tax base and increase revenue collection.

According to Rehan, these measures could also help the government achieve its Rs100 billion export target earlier than expected.

The KATI president proposed forming a joint committee comprising representatives of the FBR and KATI to ensure faster resolution of tax-related complaints and improve coordination between the two institutions.

He also called for targeted measures to address taxation issues involving raw material imports, which he said were disrupting industrial and commercial activities.

Delayed Tax Refunds Remain a Major Concern

One of the key issues raised during the meeting was the prolonged delay in tax refunds, particularly payments owed to export-oriented industries and regular taxpayers.

Rehan said billions of rupees belonging to industrialists remained tied up with the FBR in pending refunds, restricting the working capital businesses need to sustain their operations.

He urged the tax authority to follow legally prescribed refund timelines and strengthen automated systems for processing and releasing genuine, verified claims.

The KATI president also called for an end to unnecessary delays arising from audits and documentation requirements, emphasising that legitimate refunds should not be withheld without valid reasons.

He further highlighted the importance of automating tax procedures to reduce direct interaction between tax officials and business representatives, limit discretionary decisions and minimise opportunities for corruption.

Rehan said continued cooperation between the FBR and industrial associations, combined with better tax administration and timely refund payments, would help resolve business concerns and support industrial growth.