Businesses warn aggressive super tax recovery could strain cash flows

Business leaders have raised concerns over the government’s move to pursue aggressive recovery of super tax after a recent court ruling upheld its legality, cautioning that large, one-time demands could disrupt operations and add pressure to an already constrained business environment.

In a statement, Muhammad Rehan Hanif, President of the Karachi Chamber of Commerce and Industry (KCCI), said that while the business community accepts the verdict of the Federal Constitutional Court and recognises the government’s revenue needs, the timing and method of tax collection remain critical.

He said businesses are facing liquidity constraints due to high energy tariffs, elevated interest rates, increased taxation and rising input costs. He added that many industrial units, particularly in Karachi, are already under financial pressure.

According to the statement, immediate demands for super tax payments amounting to hundreds of billions of rupees could reduce working capital and disrupt cash flows across industries.

The KCCI president urged the government to allow super tax liabilities to be adjusted against long-pending income tax and sales tax refund claims, saying this would ease pressure on businesses while enabling the state to secure revenues without disrupting economic activity.