By SKM
February 2, 2026
ISLAMABAD: The All Pakistan Textile Mills Association (APTMA) has asked the Federal Board of Revenue (FBR) to allow adjustment of Super Tax liabilities against long-pending tax refunds, warning that immediate recovery could intensify liquidity pressures across the export-oriented textile sector.
In a statement issued on Monday, APTMA Chairman Kamran Arshad said the industry is grappling with slowing export orders and a difficult operating environment, leaving manufacturers and exporters unable to make large tax payments in a single tranche.
He said that enforcing upfront payment of Super Tax could disrupt routine business operations and weigh on the broader economy, particularly at a time when the textile sector is facing high energy tariffs, double-digit interest rates, rising taxes and elevated input costs.
APTMA proposed that Super Tax liabilities be adjusted against outstanding income tax, sales tax and other government dues, including Technology Upgradation Fund (TUF) and Duty Drawback of Local Taxes and Levies (DLTL) claims that have remained unpaid for years. Any remaining liability, the association said, should be recovered through phased and business-friendly instalments.
The association also raised concerns over the calculation of Super Tax under Section 4C for exporters, noting that they remained under the Final Tax Regime (FTR) up to Tax Year 2024. According to APTMA, Super Tax should be computed on the basis of imputable income, derived through reverse calculation of tax already paid under the FTR, to ensure fair treatment and consistency.
APTMA called on the FBR to consult industry stakeholders and issue clear guidelines to avoid differing interpretations and disputes. It also urged the tax authority to suspend recovery proceedings until outstanding concerns are addressed.
While the FBR maintains that Super Tax is a lawful measure aimed at strengthening revenue collection during challenging fiscal conditions, industry representatives argue that unresolved refund backlogs and limited cash flows are undermining the sector’s ability to comply.
APTMA warned that failure to adopt a flexible approach could result in closures of textile units, particularly small and medium enterprises, with adverse implications for exports, employment and the tax base. Ends
