By SKM
February 3, 2026
ISLAMABAD: Pakistan’s textile industry has sounded the alarm over the Federal Board of Revenue’s (FBR) move to initiate immediate recovery of Super Tax, warning that the step could push dozens of export-oriented mills toward shutdown amid an already fragile economic environment.
The All Pakistan Textile Mills Association (APTMA), in a representation to FBR Chairman Rashid Mahmood Langrial, said that tax field formations have begun issuing notices demanding payment of the entire outstanding Super Tax following a recent judgment of the Federal Constitutional Court.
APTMA said the industry is facing acute liquidity stress due to weak global demand, high energy prices, soaring interest rates, and excessive taxation, leaving exporters with little room to absorb fresh fiscal shocks. “Payment of Super Tax in one tranche is neither practical nor sustainable,” the association said, cautioning that aggressive recovery would disrupt operations and threaten employment across the sector.
The association warned that immediate recovery running into hundreds of billions of rupees would severely strain cash flows, forcing mills to cut production or shut down entirely. Such closures, it said, would hurt exports, employment, and government revenues at a time when economic stability remains fragile.
APTMA also raised concerns over the method of Super Tax calculation for exporters, noting that the sector remained under the Final Tax Regime (FTR) up to Tax Year 2024. It said Super Tax under Section 4C must be computed on the basis of imputable income through reverse calculation of income corresponding to tax already paid under FTR, rather than on notional or arbitrary assessments.
Calling for immediate clarity, the textile body urged the FBR to hold consultations with industry stakeholders and issue a uniform guideline to avoid multiple interpretations by tax officials. Until such clarification is issued, APTMA requested suspension of recovery proceedings against exporters.
The association further proposed that Super Tax liabilities be adjusted against long-pending income tax and sales tax refunds, as well as other outstanding claims such as TUF and DLTL. Any remaining amount, it said, should be converted into easy, business-friendly instalments.
APTMA warned that the recovery drive could undermine recent relief measures announced by the Prime Minister to support industrial activity, making it difficult for companies to meet even routine obligations such as salaries and utility bills.
The association reiterated that it remains available for engagement with the FBR to reach a solution that balances revenue collection with the survival of Pakistan’s largest export industry. Ends
