Pakistan tax chief says Super Tax can be recovered in installments

Federal Board of Revenue Chairman Rashid Mahmood Langrial said that Pakistan’s tax authority is prepared to recover Super Tax from companies in installments on a case-by-case basis, offering potential relief to the corporate sector amid concerns over abrupt enforcement.

Langrial made the remarks during a meeting of the Senate Standing Committee on Finance, where lawmakers and business representatives said sudden recovery measures had created serious difficulties for industries.

Committee members noted that while courts have upheld the legality of the Super Tax, its enforcement has increased pressure on businesses and the broader economy.

Langrial told the committee that the FBR has already issued instructions to field formations to ensure taxpayers do not face unnecessary hardship during implementation. He said companies that maintain audited accounts have made provisions for the tax in recent years and assured lawmakers that no business would be forced to shut down because of recovery actions.

He also rejected reports claiming PKR 300 billion in Super Tax recoveries, saying the actual figure was closer to PKR 217 billion.

The matter has remained under litigation for several years, with 45 hearings held in various courts and 17 hearings conducted by the Federal Constitutional Court, he said.

Concerns were raised over notices sent to taxpayers that included warnings of bank account attachments and possible arrests.

Business representatives described such measures as harassment and warned they could deter investment. They urged authorities to spread recovery over two to three years rather than demanding immediate payment.

The committee emphasized the need for business-friendly policies and recommended that facilitation be extended to taxpayers. The FBR reiterated its willingness to allow installment-based payments, while the Finance Ministry said the issue would be reviewed further during upcoming budget discussions.

Senator Sherry Rehman voiced strong concerns over what she described as the abrupt recovery of the Super Tax. Langrial responded that the FBR had made it clear to its field offices that taxpayers should not face implementation problems.

“It is not possible that taxpayers paying a specific tax would suddenly be stopped or discontinued,” Langrial said. “We will not allow this to happen, and we will recover the Super Tax. Recovery can be made in installments, keeping in view the specific situation of business and trade.”

Langrial said hundreds of taxpayers are liable to pay the Super Tax and confirmed that recovery instructions had been issued following the Federal Constitutional Court’s ruling.

Senator Abdul Qader echoed concerns raised by business groups, warning against what he termed a “double Super Tax” and alleging that the FBR had begun using arrest threats to enforce compliance.