Senate pushes back against immediate super tax recovery

Islamabad: The Senate Standing Committee on Finance and Revenue on Wednesday asked the Federal Board of Revenue (FBR) to allow recovery of Super Tax over a period of two to three years rather than requiring immediate payment, citing concerns over pressure on businesses.

During the meeting, FBR Chairman Rashid Mahmood Langrial clarified that total Super Tax collections are expected to reach around Rs217 billion, dismissing media reports that had estimated the figure at Rs300 billion.

“Total Super Tax collection stands at Rs217 billion. Reports suggesting collections of Rs300 billion are incorrect,” Langrial told the committee.

The meeting, held at Parliament House and chaired by Senator Saleem Mandviwalla, was attended by Finance Minister Muhammad Aurangzeb, State Bank Governor Jameel Ahmad, and senior FBR officials.

Addressing concerns about text messages sent by the tax authority, Langrial said the FBR only sends congratulatory messages to taxpayers on property purchases, advising them to declare the assets in their tax returns.

“This practice has helped increase the number of taxpayers by nearly one million,” he said.

Finance Minister Muhammad Aurangzeb supported the explanation, saying he had also received such a message and that there was no issue with the FBR reminding taxpayers.

However, committee members raised concerns about the financial burden on businesses.

Senator Abdul Qadir questioned how taxpayers could be expected to pay liabilities from the past three to four years at once, warning that excessive pressure could force businesses to shut down or leave the country.

He urged the FBR to allow payment of Super Tax over two to three years instead of demanding immediate recovery.

Responding to the concerns, the finance minister said the committee’s suggestions had been noted and that lawmakers would be consulted during preparations for the next federal budget.

Langrial assured the committee that no businesses would be shut down and said instalment plans could be offered in certain cases if necessary.

Meanwhile, Senator Sherry Rehman expressed concern over the closure of government-owned enterprises at a time when job opportunities were already limited.

In response, the finance minister said macroeconomic stability had been achieved and that privatisation of state-owned enterprises would boost business activity and employment. He added that affected employees would be offered attractive packages.