The All Pakistan Textile Mills Association (APTMA) has called on the FBR to adjust Super Tax liabilities against long-pending tax refunds. The association warned that immediate recovery could disrupt industrial operations and harm exports.
In a statement issued on Monday, APTMA said manufacturers and exporters are facing severe liquidity pressures. The sector cannot pay large Super Tax amounts in a single installment without affecting day-to-day business operations.
APTMA Chairman Kamran Arshad said the export-oriented textile industry has struggled due to weak export orders and a challenging business environment. He explained that upfront Super Tax payments would drain working capital and disrupt routine activities.
The association highlighted several factors already weakening domestic industry, including high energy costs, double-digit interest rates, excessive taxation, and rising imports of raw materials and intermediate goods. Immediate recovery of Super Tax, amounting to hundreds of billions of rupees, could further strain cash flows and hinder businesses from paying salaries, utility bills, and suppliers.
APTMA urged the FBR to adjust Super Tax dues against pending income tax, sales tax, and other refund claims, including TUF and DLTL. It also recommended converting any remaining liability into manageable instalments spread over a reasonable period.
The association raised concerns about the calculation of Super Tax under Section 4C for exporters. According to APTMA, exporters remained under the Final Tax Regime until the 2024 tax year, and Super Tax should be calculated based on income already taxed through reverse calculation.
Kamran Arshad said the absence of clear guidelines has created uncertainty and the risk of multiple interpretations. He urged the FBR to engage with stakeholders and issue clarification to ensure fair application of the law.
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APTMA demanded that recovery proceedings be suspended until these issues are resolved. The association warned that failure to provide relief could result in large-scale closure of textile units, reduced exports, a shrinking tax base, and unemployment for hundreds of thousands of workers.
