By SKM
March 6, 2026
Islamabad: The All Pakistan Textile Mills Association (APTMA) has urged the Federal Board of Revenue (FBR) to allow textile exporters to adjust Super Tax liabilities against pending refunds and pay the remaining amount through installments, warning that the sector is facing a severe liquidity crunch.
In a letter to Rashid Mahmood Langrial, Chairman of the FBR, APTMA Chairman Kamran Arshad said tax field offices were demanding lump-sum payment of Super Tax despite repeated requests from the industry for relief.
While respecting the verdict of the Supreme Court of Pakistan on the levy of Super Tax under Section 4C of the Income Tax Ordinance, the association said textile mills were not in a position to pay the entire liability in one go due to financial constraints.
APTMA also pointed to inconsistent practices across FBR field formations, noting that some taxpayers were being allowed to pay in installments while others were asked to deposit the full amount upfront, creating uncertainty for exporters.
The association reiterated that Super Tax liabilities should be adjusted against all verified and pending refunds, including income tax and sales tax refunds, without limiting such adjustments to a single tax year.
It further proposed that any remaining liability be paid through reasonable installments, citing the precedent set in the Gas Infrastructure Development Cess (GIDC) case, where the Supreme Court allowed industry to clear dues in 24 monthly installments.
APTMA also asked the FBR to ensure that advance tax payments and previously assessed taxes are adjusted while calculating the Super Tax liability so that only the net payable amount is recovered.
Another issue raised by the association concerns exporters who operated under the Final Tax Regime (FTR) until tax year 2024. APTMA said Super Tax for exporters should be calculated on imputable income, determined through reverse calculation of income corresponding to the tax already paid under the FTR.
The association called on the FBR to hold consultations with industry stakeholders to develop a clear mechanism for calculating imputable income and to issue uniform guidelines to tax offices.
APTMA warned that the export-oriented textile sector is already under pressure due to high energy costs, elevated interest rates, and declining export orders, and said immediate recovery of the full Super Tax liability could further strain business operations.
It urged the FBR to issue urgent instructions to field formations to allow refund adjustments and installment payments in order to ease cash flow pressures on exporters while ensuring compliance with tax obligations.
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