Super Tax: Government Plans Complete Abolition Through Phased Reduction, Says FBR Chief

KARACHI, November 5, 2026 — The government plans to completely abolish the super tax through a phased process, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial said, confirming that work on its gradual elimination had begun with an initial reduction of two percentage points.

Addressing industrialists during a visit to the Korangi Association of Trade and Industry (KATI), Langrial said the FBR was working to improve the taxation system, resolve business-related difficulties and strengthen cooperation with the industrial sector.

According to a statement issued by KATI, the FBR chairman announced plans to establish a dedicated office at the association to help industrialists resolve tax-related issues in the Korangi Industrial Area.

He also said the FBR would extend its help desk services beyond Karachi to Sukkur. The tax authority would consult relevant stakeholders to address procedural problems affecting raw material imports.

Langrial assured industrialists that the FBR would arrange meetings to resolve border trade-related issues affecting the leather industry.

He also discussed improving the effectiveness of the Track and Trace System through cooperation with the pharmaceutical industry, including the possibility of adopting a model similar to the one used by the Drug Regulatory Authority of Pakistan (DRAP).

The FBR chairman said the authority aimed to facilitate businesses while strengthening tax administration and transparency. He urged industrialists and traders to help identify tax evasion and bring businesses operating outside the tax system into the formal economy.

During the meeting, representatives from various industrial sectors highlighted concerns about taxation and administrative procedures. Langrial listened to their complaints and issued instructions for their resolution, according to KATI.

Earlier, KATI President Sheikh Umer Rehan stressed the need for closer cooperation between government institutions and Karachi’s industrial sector. He said greater engagement from federal ministers and cabinet members could help strengthen economic activity.

Rehan welcomed improved coordination between the FBR and KATI, adding that effective implementation of digitalisation initiatives, the faceless assessment system and other reforms could expand the tax base and increase government revenue.

He said these measures could also help the government achieve its export target of Rs100 billion sooner.

The KATI president proposed forming a joint committee comprising representatives of the FBR and KATI to ensure the timely resolution of tax-related complaints and improve coordination between the two institutions.

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He also called for targeted measures to address problems associated with raw material imports, which he said were affecting industrial and commercial operations.

The prolonged delay in tax refunds emerged as another major concern, particularly for export-oriented industries and regular taxpayers.

Rehan said billions of rupees belonging to industrialists remained tied up in pending refunds with the FBR, limiting the working capital businesses need to maintain operations.

He urged the tax authority to follow prescribed timelines for refund payments and strengthen automated systems to process and disburse genuine, verified claims.

He also called for an end to unnecessary delays arising from audits and documentation requirements, saying legitimate refunds should not be withheld without justification.

Rehan further emphasised the need to automate tax procedures to reduce direct interaction between tax officials and business representatives, limit discretionary decisions and minimise opportunities for corruption.

He said sustained cooperation between the FBR and industrial associations, combined with better tax administration and timely refund payments, would help address business concerns and support industrial growth.