Immediate Recovery of Rs 217 Billion Super Tax from Exporters Is Alarming, Industries Pushed to the Brink of Collapse, Says Muhammad Ikram Rajput
President of the Korangi Association of Trade and Industry (KATI), Muhammad Ikram Rajput, has stated that the immediate recovery of Rs 217 billion in super tax from exporters for the period 2022 to 2026 will create further difficulties for an industrial sector that is already under severe pressure. He said the government’s decision is alarming and will not only badly affect local industry but also pose serious risks to investment.
Muhammad Ikram Rajput said that since the imposition of super tax, the overall tax burden on industries has exceeded 50 percent, making it impossible to continue doing business under such conditions. He added that expensive electricity and gas have already made production costs the highest in the region. He urged the federal government to review this decision and provide relief to industry and trade.
The KATI president demanded immediate and serious negotiations between the federal government and trade and industrial organizations across the country to develop a practical and industry friendly mechanism. He proposed that instead of lump sum recovery of four years’ dues, the amount should be collected through easy installments over a period of three to four years. Alternatively, a special concession may be granted on payment of 25 percent in advance, and adjustment against pending export refunds should also be allowed, so that industrialists may receive some relief from the severe financial crisis they are facing.
Ikram Rajput warned that if the government does not take immediate measures, rising financial pressure could lead to large scale industrial shutdowns, which would not only affect employment opportunities but also cause irreparable damage to the economy.
He said that local industry is facing serious challenges due to intense competition in the global market, and the imposition of super tax will further weaken exports and negatively impact industrial activity.
The KATI president noted that in the past, taxes imposed on exporters under the fixed tax regime were considered full and final settlement. Therefore, exporters did not include super tax in their cost calculations. In this context, making exporters liable to pay super tax retrospectively is not appropriate.
He appealed to the government to immediately initiate consultations to support industry and trade, formulate a long term policy, and take decisions that help ensure continuity of industrial activity and promote exports.
Ikram Rajput strongly urged the government to implement policies that support export growth, investment stability, and overall economic development. He emphasized that without facilitating the export sector, economic improvement is not possible.
