KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has expressed concern over the government’s move to aggressively recover super tax following the recent decision of the Federal Constitutional Court (FCC) upholding its legality.

The chamber cautioned that demanding large tax payments in a single tranche would disrupt business operations and further strain the country’s already fragile economy.

KCCI President Muhammad Rehan Hanif said the timing of the recovery drive was particularly difficult as the business community was grappling with an acute liquidity crunch caused by high energy tariffs, elevated interest rates, excessive taxation and rising input costs.

He said abrupt demands for super tax running into hundreds of billions of rupees would erode working capital, disrupt cash flows and make it difficult for businesses to meet routine obligations, including salaries, utility bills, raw material imports and bank repayments. Requiring payment in a single installment, he added, was neither practical nor sustainable.

Mr Hanif urged the government to allow adjustment of super tax liabilities against long-pending income tax and sales tax refund claims, which, he said, had deprived exporters and manufacturers of much-needed liquidity for years.

Alternatively, he called for a clear and structured installment facility that would enable taxpayers to settle super tax liabilities over a reasonable period without paralysing operations. Such a mechanism, he said, would encourage compliance while protecting industrial activity and employment.