FBR steps in to clear tax refund delays in Karachi

March 27, 2026 (MLN): Delays in tax refunds and procedural bottlenecks affecting Karachi’s business community are set to be addressed following directives from the Federal Board of Revenue (FBR) to its Karachi offices to expedite resolution of long-standing issues.

The move came after a detailed meeting between FBR officials and the Karachi Chamber of Commerce and Industry (KCCI), where business leaders outlined a wide range of challenges impacting operational and policy aspects of commerce in Pakistan’s largest commercial hub.

Key issues raised included delays in the processing of tax refunds, complications with super tax installments, and other procedural bottlenecks that have historically affected cash flow, operational planning, and overall business efficiency.

Representatives of KCCI provided a comprehensive briefing on these concerns, emphasizing their direct impact on liquidity and trade facilitation.

FBR Chairman Rashid Mahmood Langrial, accompanied by Member Customs Operations, Chief Collector Customs Appraisement (South), and Chief Commissioner Large Taxpayer Office (LTO) Karachi, instructed IRS and Customs officials to conduct a thorough review of all concerns raised and provide timely, effective resolutions.

He emphasized that all legitimate tax refund claims would be processed efficiently, subject to due process and compliance with codal requirements, to improve liquidity for local enterprises, according to the press release.

The Chairman further clarified that while FBR is committed to facilitating taxpayers and addressing genuine concerns, full compliance with applicable tax laws and regulations remains mandatory.

He also reaffirmed a zero-tolerance approach to corruption, stressing that FBR officials are prohibited from creating unnecessary hurdles or seeking undue favors from taxpayers.

Businesses were urged to report any instances of corruption with credible evidence, with strict disciplinary measures promised against officials found engaging in misconduct.

The FBR’s directives are aimed at creating a fair, transparent, and business-friendly environment in Karachi, supporting smoother operational processes while maintaining accountability and ethical governance.

With Karachi contributing a significant share of Pakistan’s tax revenue, expediting these issues could have broader implications for investor confidence, trade facilitation, and overall economic activity in the region.

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