The Federal Board of Revenue (FBR) has begun work on phasing out the Super Tax, with Chairman Rashid Mahmood Langrial telling industrialists in Karachi on November 4 that the government intends to abolish the levy altogether.
What happened?
FBR Chairman Rashid Mahmood Langrial said the government intends to abolish the Super Tax and that work has already begun on its gradual phase-out. He was speaking during a meeting with industrialists at the Korangi Association of Trade and Industry (KATI) in Karachi.
Key details
- The Super Tax rate has already been reduced by 2 percent, according to the FBR chairman.
- An FBR office will be established at KATI to address tax-related issues faced by industrialists in the Korangi Industrial Area.
- The FBR will hold consultations to simplify procedures for importing industrial raw materials.
- Meetings will also be held to resolve cross-border trade issues faced by the leather industry.
- A new model is under consideration to improve the effectiveness of the Track and Trace system in the pharmaceutical sector.
- The FBR chairman urged the business community to cooperate with the government in eliminating tax evasion.
What it means for people in Pakistan
For businesses, particularly large companies that pay the Super Tax, a gradual phase-out would lower the tax burden over time and could encourage fresh investment. Industrialists at the meeting also raised long-pending tax refunds worth billions of rupees and asked the government to broaden the tax base instead of placing additional burdens on existing taxpayers. No timeline for the abolition has been announced yet, so the announcement marks the start of a process rather than an immediate change in the law.
Source: https://www.thenews.pk/print/1447028-fbr-begins-process-to-phase-out-super-tax
