Pakistan’s industrial sector may receive some relief as the federal government moves towards gradually eliminating the super tax. Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has confirmed that the government intends to withdraw the tax completely, with the process already underway following an initial two-percentage-point reduction.
Speaking at a meeting with industrialists at the Korangi Association of Trade and Industry (KATI), Langrial discussed the government’s efforts to improve tax administration, simplify business procedures, and address concerns raised by the industrial community.
FBR Plans Better Support for Industrialists
To improve coordination with businesses, the FBR chairman announced plans to establish a dedicated facilitation office at KATI. The authority also intends to extend its help desk services beyond Karachi to Sukkur.
He further assured industrial representatives that issues involving raw material imports, border trade, and taxation procedures would be discussed with relevant stakeholders.
The FBR also plans to strengthen the Track and Trace System through greater cooperation with the pharmaceutical industry, potentially adopting an approach similar to DRAP’s existing model.
Delayed Tax Refunds Remain a Major Concern
One of the biggest issues raised by KATI representatives was the delay in tax refunds. According to KATI President Sheikh Umer Rehan, billions of rupees belonging to industrialists remain tied up in pending claims, creating serious working capital difficulties.
He urged the FBR to speed up refund payments, particularly for export-oriented businesses and regular taxpayers. He also called for reducing unnecessary audits and documentation requirements that delay legitimate claims.
Rehan stressed that greater automation could make tax procedures more transparent, reduce direct interaction with officials, and minimize opportunities for corruption.
Industry Seeks Stronger Government Coordination
KATI also proposed establishing a joint committee with the FBR to ensure that industrial taxation problems are addressed without unnecessary delays.
Rehan highlighted the importance of closer cooperation between government institutions and the business community, noting that effective implementation of digital taxation, faceless assessment, and other reforms could broaden the tax base and improve revenue collection.
Can Tax Reforms Boost Industrial Growth?
The government’s stated intention to abolish the super tax could provide additional financial breathing space for businesses. However, industrialists are also looking for practical improvements in refund payments, import procedures, and tax administration.
For Pakistan’s industrial sector, reducing the tax burden is only one part of the solution. Businesses also need predictable policies, easier access to working capital, and transparent regulatory procedures.
If the proposed reforms are implemented effectively, they could improve business confidence, support industrial investment, and strengthen the country’s export potential. The real impact, however, will depend on how quickly the government translates its assurances into tangible relief for the business community.