Rs217bn super tax arrears may be recovered in instalments: FBR
ISLAMABAD: As the International Monetary Fund (IMF) review mission is expected later this month, the government has signalled that it may recover around Rs217 billion in pending super tax dues through instalments to reduce pressure on the business community, while also moving towards introducing redesigned currency notes.
Briefing the Senate Standing Committee on Finance and Revenue, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial said the outstanding super tax recoverable after the Supreme Court’s recent verdict amounted to Rs217bn, rejecting claims that the figure was as high as Rs300bn.
He told lawmakers that the government had no intention of forcing businesses to shut down due to tax enforcement and was willing to consider instalment-based recovery plans on a case-by-case basis. The chairman added that the tax authorities would ensure smooth implementation of the apex court’s ruling, which last month upheld the government’s authority to impose the super tax and ordered recovery of all pending amounts.
The levy was first introduced in 2015 for one year and was later enhanced and extended. Several firms had obtained relief from high courts, but the Supreme Court’s decision has now paved the way for recoveries.
Senators expressed concern that sudden recovery measures could overwhelm businesses, potentially leading to closures or relocation abroad. They said chambers of commerce had raised serious objections and alleged that taxpayers were being harassed through threats of account freezes and arrests. The lawmakers urged the FBR to allow gradual recoveries spread over two to three years.
Addressing concerns over tax recovery messages, Finance Minister Muhammad Aurangzeb said the FBR had improved control over smuggling and revenue leakages and maintained that SMS alerts sent to taxpayers did not violate financial privacy. He noted that he himself had received such messages and found nothing objectionable, as long as they reached the intended recipients.
The FBR chairman explained that the messages were sent only to relevant taxpayers, adding that reminders — including congratulatory messages after property purchases — had helped increase tax return filers by nearly a million and reduced the number of zero-income declarations.
Mr Aurangzeb told the committee that Pakistan’s external financing requirements were fully covered and that the IMF’s third review was scheduled for the end of February. He said discussions with the United Arab Emirates were ongoing and that Pakistan planned to launch its first Panda Bond in China within the first quarter of the year, although regulatory delays had pushed the timeline back.
On delays in National Finance Commission (NFC) talks, the finance minister said several sub-groups were actively meeting and that a full NFC session would be convened once progress was made. He reaffirmed the government’s commitment to advancing the process.
The Senate panel, chaired by Saleem Mandviwalla, also decided to hold an in-camera session to discuss corruption and leakages in the tax system.
Separately, the State Bank of Pakistan governor briefed the committee on proposed new designs for currency notes from Rs10 to Rs5,000, confirming the inclusion of enhanced security features and ruling out any plan to discontinue the Rs5,000 note. The designs have been approved by the SBP Board and sent to the federal cabinet for final approval.
The committee also criticised commercial banks for charging customers additional fees for SMS alerts and other services, recommending that such charges be abolished, while the SBP governor said these matters were governed by agreements between banks and customers.
