KCCI slams FBR proposals
President of the Karachi Chamber of Commerce and Industry (KCCI), Muhammad Jawed Bilwani, has strongly criticised the Federal Board of Revenue (FBR) for what he termed its authoritarian conduct and disregard for the Business Anomalies Committee, comprising presidents of chambers and trade bodies from across Pakistan.
Following extensive consultations with its members, KCCI has launched a citywide protest by displaying banners across Karachi against what it calls "oppressive" provisions in the Finance Bill 2025-26, particularly the proposed Section 37AA in the Sales Tax Act.
"This is just the beginning," Bilwani said in a statement. "The protest will escalate, with press conferences by KCCI and other major chambers. If our demands are ignored, we may have no choice but to call for citywide or even nationwide strikes."
He dismissed the finance minister's claims of a "public-friendly" and "business-friendly" budget as detached from reality. "Industrialists and exporters unanimously agree — there is no relief." Bilwani outlined a grim outlook for the business environment, citing high energy costs, poor infrastructure, gas shortages, water scarcity, and delayed tax refunds. "Our exports survive not because of policy support, but due to the resilience of our business community. Some buyers are even advising us to shift operations to more stable, business-friendly countries."
Criticising Section 37AA as a "draconian law," he said it allows FBR to freeze bank accounts, seize funds, and arrest taxpayers based solely on suspicion, regardless of their past compliance. "Who will continue to do business under such hostile conditions?"
He revealed that many businessmen have asked KCCI to help them explore options for relocating abroad. "We still want to stay and contribute. But we need the government and prime minister to listen and give us confidence."
Bilwani stressed that this frustration is nationwide. "Faisalabad, Lahore, Sialkot — all major export hubs — are raising the same concerns."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
19 hours ago
- Business Recorder
Biometric verification of registered persons: LTBA urges FBR, Nadra to bring in secure mobile app
ISLAMABAD: The Federal Board of Revenue (FBR) and the National Database and Registration Authority (Nadra) should jointly implement a secure mobile application for biometric verification of sales tax registered persons. According to a letter of the Lahore Tax Bar Association (LTBA) to the FBR Chairman, the association highlighted major challenges faced by certain sales taxpayers under the current biometric verification system and proposed a digital solution aligned with FBR's commitment to facilitation and innovation. Presently, biometric verification for sales tax registration and annually bio metric which required in terms of SRO 350(1)/2024 is conducted exclusively through Nadra's physical infrastructure. While this may suffice for most residents, it poses considerable challenges for the following categories of taxpayers: (I); Individuals temporarily residing or travelling abroad. (2); Taxpayers located in remote or underdeveloped areas. (3); Elderly or physically challenged individuals who cannot easily access the Nadra facilities. Due to the unavailability of a remote verification mechanism, these taxpayers are unable to complete their sales tax registration and annually biometric which required in tarns of SRO 350(1)/2024 dated 07.03.2025, despite their willingness to comply with legal requirements. This creates unnecessary delays, hampers business operations, filing of sales tax returns and discourages potential entrants into the tax system. Key challenges included no Remote Option for Overseas Taxpayers and delays in Registration Activation and filing of sales tax returns. He LTBA proposed the FBR should consider in coordination with Nadra, the development and deployment of a secure mobile application for biometric verification. This solution may include facial recognition or fingerprint scanning wing smartphone technology and secure integration between the FBR and the Nadra. The expected benefits included enhanced taxpayer's facilitation particularly for overseas Pakistanis and remote areas residents, improved compliance rate with quicker registration and fewer delays; expanded lax base and alignment with FBR's digital transformation and automation goals. The association is confident that this initiative would greatly enhance the accessibility, efficiency, compliance and Inclusivity of FBR's taxpayers' registration system and ease filing of sales tax returns and enhance the revenue collection, it added. Copyright Business Recorder, 2025
Business Recorder
2 days ago
- Business Recorder
Urgent intervention sought to resolve Customs clearance delay
LAHORE: Customs agents are perturbed over undue delay in the clearance process of their Baggage Declarations, seeking immediate intervention of relevant authorities to resolve the issue. According to a complaint, the BD was filed on July 28, 2025, and the physical examination of the shipment was conducted on August 1, 2025. However, as of August 8, 2025, the BD status remains 'Assessment in Process,' despite repeated follow-ups with concerned officers. Such delays, according to sources, have resulted in substantial Shipping Line Detention and Port Demurrage Charges, amounting to approximately Rs 50,000 per day, which is increasing daily. The trading firm attributes the financial burden entirely to administrative delay, causing severe hardship to the importer. They said there is an urgent need to complete the assessment process and clear the shipment without further delay, determine the cause and responsibility for the delay and take corrective action to prevent recurrence and provide relief to the importer for the financial losses incurred due to the unjustified delay. They have further added that importers are facing such hassle despite the claim of the Federal Board of Revenue (FBR) of introducing faceless system. Copyright Business Recorder, 2025
Business Recorder
2 days ago
- Business Recorder
FBR sets Rs 200,000 cash payment limit, e-commerce CoD orders
ISLAMABAD: The Federal Board of Revenue (FBR) has fixed transaction limit of Rs 200,000 for cash-based payments made at retail outlets in markets and e-commerce Cash on Delivery (CoD) orders. In this regard, the FBR has issued Circular No. 02 of 2025-26 (Income Tax) on Friday. Pakistan's e-commerce sector faces operational costs surge amid new taxes According to the income tax circular issued on Friday, in order to promote the government's overall objective of cashless economy and in line with the provisions of section 21 (s) of the Income Tax Ordinance. 2001, it is reiterated that the same principle on transaction limits for cash-based payments as for retail outlets to be followed for e-commerce COD orders as well. The limit for cash transaction for both shall be Rs. 200,000/- for this purpose, FBR added. Copyright Business Recorder, 2025
