APTMA Seeks Super Tax Relief for Textile Sector

The All Pakistan Textile Mills Association (APTMA) on Monday urged the Federal Board of Revenue (FBR) to permit the adjustment of super tax liabilities against outstanding sales tax, income tax, and other pending refund claims, cautioning that immediate recovery could further strain the already liquidity-starved textile industry.

APTMA Chairman Arshad stated that the sector is operating under severe pressure due to a fragile business climate, elevated energy tariffs, double-digit interest rates, excessive taxation, and a surge in imports of raw materials and intermediate goods that are crowding out domestic upstream production. He warned that the prompt recovery of super tax—amounting to hundreds of billions of rupees—would significantly erode working capital, disrupt cash flows, and impair the ability of firms to meet routine financial obligations, including wages, utility payments, and other operational expenses.

He called on authorities to convert any residual super tax liability, after adjusting pending refund claims, into “easy and business-friendly instalments” to reduce the financial burden on manufacturers.

Arshad also raised technical objections regarding Section 4C of the Income Tax Ordinance, pointing out that exporters operating under the Final Tax Regime (FTR) up to tax year 2024 should have their super tax calculated on the basis of imputable income. He proposed a reverse computation of income already taxed under the FTR to establish an equivalent liability under the Normal Tax Regime.

Furthermore, he emphasized the need for structured engagement between the FBR, APTMA, and other stakeholders to issue a broad-based clarification on Section 4C, warning that conflicting interpretations could disrupt the export-driven textile sector.

The APTMA chair