KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has 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.
President KCCI 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 are equally critical, particularly when the business community is 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, are already operating under extreme financial stress. The abrupt demand for super tax payments running into hundreds of billions of rupees will drain working capital, disrupt cash flows, and make it impossible for many businesses to meet routine obligations such as salaries, utility bills, raw material imports, and bank repayments.
President KCCI emphasized that forcing businesses to deposit huge amounts of super tax in a single installment is neither practical nor sustainable. He urged the government to immediately allow adjustment of super tax liabilities against long-pending income tax and sales tax refund claims, which have already deprived exporters and manufacturers of much-needed liquidity for years.
Alternatively, he said, the government must announce a clear, structured and business-friendly installment facility, enabling taxpayers to discharge their super tax liabilities over a reasonable period without paralyzing their operations. Such an approach, he added, would ensure better compliance while safeguarding industrial continuity and employment.
Highlighting the broader economic implications, President Hanif warned that non-provision of relief mechanisms would inevitably lead to scaling down of operations, layoffs, and closure of small and medium-sized industries, particularly in export-oriented sectors such as textiles, engineering goods, pharmaceuticals, and value-added manufacturing. This, he cautioned, would not only reduce exports but also shrink the tax base instead of expanding it.
He further noted that Pakistan’s cost of doing business has already surged to unsustainable levels due to exorbitantly high electricity and gas tariffs, multiple taxes, and regulatory burdens. Imposing super tax recoveries without flexibility at such a critical juncture could push many viable businesses into insolvency, aggravating unemployment and social instability.
President KCCI reiterated that a weakened private sector cannot support revenue generation or economic recovery, and urged the government to adopt a collaborative approach by engaging with chambers of commerce and trade bodies before enforcing coercive measures.
Rehan Hanif cautioned that if refund adjustments or installment facilities are not provided, the consequences will be severe and long-lasting, potentially triggering widespread industrial shutdowns, loss of investor confidence, and further contraction of economic activity. He stressed that sustainable revenue collection must go hand in hand with business survival, urging policymakers to act wisely in the national interest.