ISLAMABAD: Chairman Federal Board of Revenue (FBR) Rashid Mahmood Langrial on Wednesday announced major relief for the corporate sector, stating that the FBR is prepared to recover Super Tax from business community in installments on a case-by-case basis.
The issue came to light during a meeting of the Senate Standing Committee on Finance held here on Wednesday. Committee members highlighted that abrupt recovery has created serious challenges for businesses. They stressed that while the courts have upheld the legality of the Super Tax, its enforcement has placed additional pressure on industries and the wider economy.
The FBR has clarified to the committee members that instructions have already been issued to ensure taxpayers do not face unnecessary difficulties during implementation. Companies maintaining audited accounts have reportedly made provisions for the tax in recent years, and the authority assured that no business will be forced to shut down as a result of recovery measures.
It was further explained to the committee that the reported figure of Rs 300 billion in recoveries is inaccurate, with the actual amount closer to Rs 217 billion. The issue has remained tied up in litigation for several years, with dozens of hearings held in various courts.
Concerns were also raised about notices sent to taxpayers, which included warnings of account attachments and arrests. Business representatives argued that such measures amount to harassment and could discourage investment. They suggested spreading recovery over two to three years instead of demanding immediate payment.
In response, the committee emphasized the need for business-friendly policies and recommended that facilitation be provided to taxpayers. The FBR reiterated its willingness to allow installment-based payments, while the Finance Ministry assured that the matter would be reviewed further during the next budget discussions.
Senator Sherry Rehman raised serious concerns over the abrupt and sudden recovery of Super Tax. The Chairman explained that the FBR has already issued instructions to the field formations, stating that taxpayers should not face implementation issues during the recovery of Super Tax.
“However, it is not possible that taxpayers paying a specific tax would be suddenly stopped or discontinued. “We will not allow this to happen, and we will recover the Super Tax. We can recover tax in installments, keeping in view the specific situation of the business and trade,” he categorically said. The companies engaged in maintaining the annual audited accounts have already made provisioning of the Super Tax for the last few years, he maintained.
He stated that the case of Super Tax had been pending in the courts since long. There were 45 hearings of Super Tax and 17 hearings in the Federal Constitutional Court.
When asked about the number of taxpayers liable to pay Super Tax, he said that hundreds of taxpayers are required to pay Super Tax.
He said that FBR has issued instructions to the field formations on recovery of Super Tax in light of judgment of the Federal Constitutional Court. Senator Sherry Rehman raised concerns that while courts had ruled super tax to be within parliament’s authority, the levy had increased pressure on businesses and the public. Senator Abdul Qader echoed these concerns, warning against what he described as “double super tax” and alleging that the FBR had begun using arrest threats to enforce compliance.
