KARACHI: The Korangi Association of Trade and Industry (KATI) has raised concerns over the Pakistani government's decision to immediately recover Rs217 billion in super tax from exporters for the period from 2022 to 2026, warning that this could lead to widespread industrial collapse. According to Korangi Association of Trade and Industry, the KATI president, Muhammad Ikram Rajput, highlighted the severe pressure already faced by the industrial sector, which could be exacerbated by this sudden financial demand.

Rajput noted that the super tax has increased the effective tax burden on industries to over 50 percent, making business operations financially unsustainable. He emphasized that the high cost of electricity and gas has already made production costs among the highest in the region, further diminishing the competitiveness of Pakistani exports.

In his appeal, Rajput urged the government to reconsider its decision and called for immediate relief measures for the industrial and commercial sectors. He emphasized the need for consultations between government entities and industry bodies to develop a practical payment mechanism. He proposed that the super tax should be recovered in installments over several years, or through concessions for partial upfront payments and adjustments against pending export refunds.

Failing to address these issues, Rajput warned, could result in large-scale industrial closures, job losses, and significant harm to the national economy. He noted that the local industry is already struggling against global competition, and the super tax imposition would further weaken exports.

Rajput also pointed out that under previous tax regimes, taxes imposed on exporters were considered final settlements, and the retrospective application of the super tax was therefore unjustified. He called for emergency consultations to establish a sustainable policy framework that supports industrial continuity and export growth, which is critical for economic recovery and development.