Government plans Rs217 billion super tax recovery in instalments 

The federal government has proposed a gradual recovery of Rs217 billion in super tax arrears to ease the burden on businesses, ahead of the International Monetary Fund’s (IMF) review mission scheduled for later this month.

Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial testified before the Senate Standing Committee on Finance and Revenue on Wednesday, clarifying that the total pending super tax arrears were Rs217 billion, not Rs300 billion as previously speculated. 

The chairman also expressed the government's willingness to collect the dues in instalments to avoid business closures and address concerns from the business community.

Langrial stated that the government would be open to considering case-by-case super tax recoveries, ensuring that no undue burden is placed on businesses during the recovery process. 

The super tax, initially imposed in 2015 for one year, was extended and increased over time. Some businesses had secured stay orders from high courts, but the Supreme Court recently upheld the tax and ordered the recovery of pending amounts.

Senators voiced concerns about the sudden tax burden, which they argued could lead to business closures or the relocation of firms abroad. They also raised issues regarding harassment of taxpayers, including threats of account freezing and arrests. Lawmakers advocated for a more gradual recovery process, suggesting a timeframe of two to three years to ease the financial strain on businesses.