BMP says new Tax Ordinance could stifle investment growth
LAHORE: The Businessmen Panel (BMP) of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has raised significant concerns about the recently implemented Tax Laws (Amendment) Ordinance 2025.
FPCCI's Businessmen Panel Chairman Mian Anjum Nisar observed that the ordinance could severely harm the country's investment climate, which is already under pressure due to various economic challenges. He further warned that if not reconsidered, these tax measures may discourage both domestic and foreign investors from engaging with Pakistan's economy, thus hindering growth.
Anjum Nisar expressed disappointment that the new tax laws, while aimed at increasing government revenue, could backfire by creating unnecessary complexities in the business environment. 'The tax laws are intended to increase compliance and improve revenue, but they bring with them a set of challenges that may, in fact, make it harder for businesses to operate efficiently,' Nisar said. He emphasized that businesses already face multiple hurdles, including rising costs and an unpredictable economic environment, and the new tax regime could add additional layers of burden on businesses.
'The government needs to understand that businesses are the backbone of the economy. They are the ones who create jobs, drive innovation, and generate the taxes that support government functions,' he said. 'Unfortunately, this new ordinance adds layers of complexity that may make it more difficult for businesses, especially small and medium-sized enterprises (SMEs), to thrive.'
The FPCCI former Chairman highlighted that while Pakistan's economy is struggling to recover from previous setbacks, the business community must be supported, not further burdened. He stated that the law, as it stands, does not provide the needed incentives for businesses to flourish. 'What we need is a policy environment that fosters growth, encourages investment, and provides a stable foundation for entrepreneurs to take risks. This ordinance does the opposite by imposing measures that will only increase the difficulty of doing business,' Nisar added.
Copyright Business Recorder, 2025
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