KARACHI: The All Pakistan Textile Mills Association (APTMA) has called on the Federal Board of Revenue (FBR) to adjust Super Tax liabilities against long-pending government refunds, following the Federal Constitutional Court’s ruling on outstanding Sales Tax, Income Tax, and other reimbursements owed to manufacturers and exporters.
In a press statement, APTMA Chairman Kamran Arshad highlighted the liquidity crisis faced by the export-oriented textile sector due to declining export orders and an unfavorable business environment. He warned that demanding full payment of Super Tax in one tranche would strain business operations and negatively impact the national economy.
Arshad noted that the industry is already grappling with high energy costs, double-digit interest rates, heavy taxation, and reliance on imported raw materials, which are affecting domestic production. Immediate recovery of Super Tax in hundreds of billions of rupees would drain working capital, disrupt cash flows, and make it difficult for businesses to meet salaries, utility bills, and other obligations.
He urged the FBR to adjust Super Tax against pending refund claims such as TUF and DLTL, with any remaining liability converted into manageable, business-friendly installments. Arshad also stressed that for exporters, Super Tax under Section 4C should be calculated based on imputable income, reflecting taxes already paid under the Final Tax Regime (FTR) up to Tax Year 2024. He called for a joint discussion between FBR, APTMA, and other stakeholders to clarify computation methods and prevent conflicting interpretations.
Arshad warned that failure to provide relief could lead to large-scale closures of SMEs and export-oriented textile mills, reducing foreign exchange inflows, shrinking the tax base, and causing massive unemployment.
