FBR Hints at Scrapping Super Tax

The Federal Board of Revenue has signaled that businesses could receive further tax relief, including a possible complete withdrawal of super tax and a reduction in the sales tax burden, as companies warn that high costs and tax pressures are hurting investment and industrial activity.

The development came during a meeting of a Senate Finance Committee subcommittee, where business representatives raised concerns over high taxation, expensive financing, rising input costs and what they described as harassment by FBR officials.

Business representatives warned that several industries are operating at only 40 percent to 45 percent capacity and that more companies could move their operations out of Pakistan if the business environment does not improve. They also pointed to the departure of several multinational companies from the country.

Hamid Ateeq Sarwar, a member of the FBR, said the government was considering further reductions in the tax burden. He said super tax was among the areas being reviewed and that the government was also examining measures to reduce sales tax costs for businesses.

Sarwar said the government had already provided around Rs. 361 billion in tax relief since 2025 on the prime minister’s directions. He said the relief included measures for salaried individuals, a reduction in super tax and the elimination of super tax for exporters.

The FBR official also said the government would continue rationalizing the tax burden while balancing the need for revenue with the country’s import requirements and fiscal constraints. Exporter facilitation committees have also been established in Karachi, Lahore, Sialkot, Faisalabad, Islamabad and Multan to address tax related concerns.

Business representatives called for lower advance and withholding taxes, simpler customs duties and easier audit procedures. They also urged the government to broaden the tax base by bringing more businesses and sectors into the formal tax system instead of increasing the burden on existing taxpayers.

The business community also raised concerns over frequent notices, audits and enforcement actions by FBR field formations, saying these practices were creating uncertainty and increasing the cost of doing business.

The committee said excessive taxation could ultimately hurt the government’s revenue objectives by discouraging investment and shrinking the formal tax base. Convener Muhammad Talha Mahmood called for a more business friendly tax system and greater transparency in the tax administration.

Get the latest business news, market insights, and economic updates wherever you prefer.

jb gaa*d lgi pha*ne tau prasad lge batne.