Islamabad, February 4, 2026: In a significant conciliatory gesture toward the corporate sector, Chairman Federal Board of Revenue (FBR) Rashid Mahmood Langrial has announced that the revenue authority is prepared to recover super tax liabilities through installment-based mechanisms on a case-by-case basis, easing concerns over abrupt enforcement.
The assurance was conveyed during a meeting of the Senate Standing Committee on Finance, where lawmakers and industry representatives voiced strong reservations about the immediate recovery of super tax, warning that such measures have exacerbated liquidity constraints and operational stress across multiple sectors of the economy.
Committee members acknowledged that the judiciary has upheld the constitutional validity of the super tax. However, they cautioned that its aggressive implementation has imposed additional fiscal pressure on businesses already grappling with macroeconomic headwinds. In response, the FBR chairman informed the committee that explicit instructions have been issued to field formations to prevent unnecessary hardship for compliant taxpayers.
Langrial clarified that several corporates, particularly those maintaining audited financial statements, have already made accounting provisions for super tax in recent years. He emphasized that no enterprise would be compelled to cease operations solely due to recovery actions undertaken by the tax authority.
Addressing widespread reports regarding a purported recovery target of Rs 300 billion, the FBR chairman dismissed the figure as overstated, stating that the actual recoverable amount stands closer to Rs 217 billion. He further noted that the matter has remained subjudice for an extended period, involving approximately 45 hearings in various courts, including 17 proceedings before the Federal Constitutional Court.
Serious concerns were raised over recovery notices warning of bank account attachments and arrests, which business leaders described as coercive and counterproductive to investment sentiment. Stakeholders proposed spreading super tax recovery over a two- to three-year horizon rather than enforcing lump-sum payments.
Senator Sherry Rehman underscored that while Parliament retains the authority to impose such levies, sudden recoveries undermine business confidence and economic stability. Senator Abdul Qader echoed these apprehensions, cautioning against what he termed “double super taxation” and alleging the use of arrest threats to compel compliance.
Reiterating the FBR’s stance, Langrial stated that Super Tax recovery would proceed in accordance with court judgments, but with flexibility. “We will recover the Super Tax, but installment-based recovery will be allowed, keeping in view the financial position and operational realities of each business,” he affirmed.
The Finance Ministry assured the committee that the issue would receive further deliberation during forthcoming budget consultations, with an emphasis on fostering a more facilitative and investment-friendly tax regime.