Super tax to drain businesses of billions

KARACHI:

Businessmen have expressed grave concern over the government's move to aggressively collect super tax following the recent decision of the Federal Constitutional Court upholding its legality, warning that demanding massive tax payments in one go will severely disrupt business operations and further weaken Pakistan's already fragile economy.

In a statement, Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Rehan Hanif, while acknowledging the court's verdict and the government's revenue requirements, stressed that the manner and timing of super tax recovery were equally critical, particularly when the business community was facing an unprecedented liquidity crunch caused by soaring energy tariffs, high interest rates, excessive taxation and escalating input costs.

He pointed out that industries across Pakistan, especially in Karachi, the country's economic backbone, were already operating under extreme financial stress. The abrupt demand for super tax payments running into hundreds of billions of rupees will drain working capital and disrupt cash flow.

The KCCI president urged the government to immediately allow adjustment of super tax liabilities against long-pending income tax and sales tax refund claims.