Gradual Elimination of Super Tax Planned, FBR Chairman Rashid Mahmood Langrial

Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has said the government intends to completely abolish the Super Tax. The rate has already been reduced by two percentage points, and work has begun on its gradual elimination.

He also announced plans to establish an FBR office at the Korangi Association of Trade and Industry (KATI). The office will address tax-related concerns raised by industrialists in Korangi Industrial Area.

The FBR will also consult relevant stakeholders to improve procedures for importing industrial raw materials. Furthermore, the scope of its help desk will expand beyond Karachi to Sukkur.

Langrial shared these plans during a meeting with industrialists at KATI. Senior FBR officials, KATI representatives and business leaders from various sectors attended the session.

FBR to Establish Office at KATI

Langrial said the new FBR office would provide industrialists with a direct channel to raise tax-related issues. The initiative aims to improve coordination between the tax authority and the business community.

He added that meetings would be arranged to address border trade issues affecting the leather industry. The FBR also discussed introducing a model similar to the Drug Regulatory Authority of Pakistan (DRAP) for the pharmaceutical sector.

The proposed approach aims to make the Track and Trace System more effective. Langrial said the FBR’s broader objective was to improve the tax system and facilitate businesses.

He urged industrialists to cooperate with the authority in identifying and eliminating tax evasion. Such cooperation, he said, would help make tax collection more transparent and effective.

During the meeting, the chairman heard concerns from industrialists across different sectors. He also issued on-the-spot instructions to address several issues, an initiative appreciated by KATI and participating businesses.

KATI Welcomes Monthly FBR Visits to Karachi

KATI President Sheikh Umer Rehan thanked Prime Minister Shehbaz Sharif for directing the FBR chairman to visit Karachi every month. He said the visits could help improve economic conditions and address challenges faced by industrialists.

Rehan suggested that federal cabinet members and ministers should also spend more time in Karachi. Greater engagement with the city, he said, would support Pakistan’s economy.

He noted that coordination between the FBR and KATI had improved considerably. The effective implementation of progressive tax policies, the faceless assessment system and digitalisation could further expand the tax net.

These measures could also increase revenue collection and help the government achieve its Rs100 billion export target earlier.

KATI Proposes Joint Committee to Resolve Tax Issues

Rehan proposed a joint committee between the FBR and KATI to resolve industrialists’ tax concerns promptly. He said stronger institutional coordination was necessary to support industrial and commercial activity.

The KATI president also highlighted delays in tax refunds as a major challenge. Billions of rupees belonging to export-oriented industries and regular taxpayers remain tied up in pending refund claims.

Ethiopia Offers Gateway to African Markets for Pakistani Businesses: Ambassador

He explained that these funds form an important part of industrial working capital. Prolonged delays therefore place pressure on business operations.

Rehan urged the FBR to follow prescribed timelines for refund payments. He also called for stronger automation to ensure genuine and verified claims are paid promptly.

He stressed that legitimate refunds should not be delayed through unnecessary audits or documentation requirements. Greater automation could also reduce direct interactions between tax officials and businesses.

According to Rehan, this would limit discretionary decisions and reduce opportunities for potential corruption.

Business Community Seeks FBR Focal Person at KATI

KATI Deputy Patron-in-Chief Zubair Chhaya called for appointing a dedicated FBR focal person at the association. The representative would help ensure faster action on tax matters affecting industrial units.

Chhaya also highlighted difficulties caused by frequent changes in statutory regulatory orders (SROs), notifications and tax laws. He said some changes increase business costs and create additional legal complications.

He proposed reviewing unnecessary SROs that adversely affect businesses. Chhaya also stressed that industrial associations and relevant stakeholders should be consulted before introducing new tax policies, duties or SROs.

Business Leaders Call for Broader Tax Net

KITE Limited Chairman Zahid Saeed, former KATI chairman Rashid Siddiqui, Mian Zahid Hussain and Zubair Tufail also shared their views.

They emphasised the need to bring untaxed sectors into the formal tax system. Broadening the tax base, they argued, would be preferable to placing additional pressure on businesses and individuals already paying taxes.

Their comments reflected wider concerns about the cost of doing business, regulatory uncertainty and the need for a more predictable tax environment.

FBR and KATI Seek Stronger Industrial Coordination

The meeting brought together senior representatives from the FBR, KATI and several industrial associations. Participants included FBR Member Inland Revenue Operations Zubair Bilal, Member Customs Operations Syed Shakeel Shah and Chief Collector Appraisement (South) Wajid Ali.

Pakistan Vanaspati Manufacturers Association Chairman Chaudhry Naveed Ahmed also attended, alongside former KATI office-bearers and other business representatives.

The proposed KATI office, monthly visits and closer institutional coordination could provide a more direct mechanism for resolving industrial tax issues. Business leaders have also called for faster refunds, simpler import procedures and a broader tax base to support industrial growth.