Tax laws termed ‘death warrants for industries'
KARACHI: Industrialists categorically rejected the recently introduced Tax Laws (Amendment) Ordinance, 2025, describing it as undemocratic, unconstitutional, and a death warrant to industries.
They denounced the ordinance for granting disproportionate authority to the Federal Board of Revenue (FBR), especially regarding tax recovery.
Signed into effect by the President of Pakistan Asif Ali Zardari, the ordinance amends Sections 138 and 140 of the Income Tax Ordinance, 2001, along with key portions of the Federal Excise Act, 2005. The changes permit the FBR to execute immediate enforcement measures—such as freezing accounts, confiscating property, and sealing business premises—once a final ruling is issued by the High Court or Supreme Court, with no requirement for additional notice.
The ordinance also allows FBR personnel to be physically deployed within factories and commercial sites to oversee production, stock levels, and the movement of goods.
President FBATI Sheikh Muhammad Tehseen has condemned this as a serious infringement on operational freedom and a new layer of bureaucratic intrusion.
'Having tax officers embedded in our workplaces is not only invasive but amounts to institutional harassment,' said the FBATI president. 'This legislation undermines constitutional rights, weakens the role of the judiciary, and creates a hostile environment for current and potential investors.' He criticized the move for bypassing legislative and judicial oversight, which he said is a clear violation of the country's constitutional framework.
Calling the ordinance overstep of authority, he stated, 'This kind of enforcement leaves no room for voluntary compliance or appeals. It's coercive and strips businesses of basic legal protections.'
President SITE Superhighway Association of Industries (SSHAI) Pervaiz Masood said that the government allowed tax authorities to recover taxes from industries at gunpoint, which is an unlawful and unconstitutional act. The ordinance will seriously hit the business confidence within the country, he said. Not only it will discourage investments at a local level, but industries may move to other countries to avoid harassment culture.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
13 hours ago
- Express Tribune
Zardari roots for broad national consensus
President Asif Ali Zardari has said the country urgently needs political stability and broad national consensus, stressing that all democratic forces must work together to ensure progress and prosperity. During a meeting with senior party leader Barrister Aamir Hasan in Lahore, President Zardari said public service should be kept uppermost, adding every individual and group will have to play their role to resolve public issues. The president urged youth to step forward for the country's progress. He called for a uniform strategy to make Pakistan economically vibrant. Zardari directed the PPP leaders to work hard for party's reorganization. Barrister Aamir Hasan proposed that competent and ideological workers be appointed on PPP's key organizational posts. Meanwhile, President Asif Ali Zardari also held a meeting with PPP central executive committee (CEC) member Chaudhry Manzoor Ahmed. They discussed the problems of labourers and government employees, and exchanged views on increasing the minimum wage by 50 per cent in the upcoming budget. Chaudhry Manzoor proposed that the minimum wage be increased to Rs50,000 and EOBI pensions by 100 per cent. Zardari expressed hope that the government will consider the welfare of labourers and workers as a top priority in the budget. He said society cannot progress without giving relief to labourers.
Business Recorder
14 hours ago
- Business Recorder
Countrywide expansion: Halan receives licence from State Bank of Pakistan
KARACHI: Halan Microfinance Bank ('the Bank'), a Pakistani microfinance bank owned by MNT-Halan, Egypt and the MENA region's first fintech unicorn, has received a national license from the State Bank of Pakistan, allowing it to expand outside Sindh to the rest of the country. The national license permits the Bank to launch and manage financial services, including branchless banking, cards, mobile banking, retailer-based transactions, and wallet services. These services will complement the Bank's current product suite, which includes microfinance, salary advances, pensions, current accounts, and savings accounts. Commenting on this development, Mounir Nakhla, Founder and Chief Executive Officer of MNT-Halan, said that securing a national license is a major step in our journey to serve more people and businesses across Pakistan. This milestone would not have been possible without the continued support of the State Bank of Pakistan, he said. Copyright Business Recorder, 2025
Business Recorder
15 hours ago
- Business Recorder
KP govt, cement industry agree to increase cement royalty
PESHAWAR: The Khyber Pakhtunkhwa government and cement industry have agreed on increasing cement royalty per ton from Rs 250 to Rs 350. They have further agreed to implement a 10% increase in royalty for the first two years, followed by a 7.5% increase over the next three years. Both parties agreed during a meeting of the cement manufacturers with the Chief Minister Khyber Pakhtunkhwa Ali Amin Khan Gandapur in Islamabad on Thursday. The meeting focused on issues facing the cement industry, their potential solutions, and the promotion of the cement sector in the province. Speaking on the occasion, KP Chief Minister Ali Amin Khan Gandapur, has emphasised that the development of the industrial sector is essential for eliminating unemployment in the province. He said that the provincial government is extending all possible facilities and support to investors in this regard. The provincial government has established its own mining company with the purpose to ensure the efficient management and exploration of mineral resources,' he said. He added that efforts are also underway to introduce modern machinery, technologies, and methodologies in the mining sector to minimize wastage of precious mineral resources. This is an effective management of minerals, through which the provincial government is increasing its revenue—an essential step toward making the province financially strong and self-sustaining, he remarked. The chief minister assured the delegation of full government support for promoting cement industry in the province. He also invited the delegation to invest in the value addition of minerals such as gypsum, placer gold, and other mineral products within the province. He highlighted the significant potential for gypsum and other important minerals in Khyber Pakhtunkhwa, which needs to be explored. The government, he said is actively taking steps to encourage value addition of mineral products within the province and will provide all possible incentives and support to investors in this sector. He invited the delegation to invest in the development of the provincial power transmission line. He stated that electricity generated from local power plants will be provided to industries at subsidized rates through the provincial transmission line—an initiative critical for industrial growth and unemployment reduction in the province. The delegates on the occasion, welcomed the Chief Minister's invitation to invest in mining and transmission line projects and expressed keen interest in further investment opportunities in Khyber Pakhtunkhwa. Copyright Business Recorder, 2025
