LCCI rejects amendments to IT Ordinance 2001, FEA 2005
LAHORE: The Lahore Chamber of Commerce and Industry on Monday out-rightly rejected 'controversial amendments' introduced to the Income Tax Ordinance 2001 and Federal Excise Act 2005, which have already come into force from May 2, 2025 without consultation with the Chambers of Commerce and Industry and stakeholders.
While addressing an emergent Press Conference, the LCCI President Mian Abuzar Shad called the amendments dangerous' and anti-business and demanded immediate withdrawal or parliamentary review through proper stakeholder consultation.
LCCI Senior Vice President Engineer Khalid Usman, Vice President Shahid Nazir Chaudhry, former LCCI President Mian Anjum Nisar and members of the Executive Committee also spoke on the occasion.
LCCI President Mian Abuzar Shad said that these amendments have handed a sword to the Federal Board of Revenue officials. They violate fundamental constitutional rights and undermine the very foundation of due legal process. Business Community rejects any law that empowers tax authorities to bypass judicial procedures and intimidate honest taxpayers.'
He criticized Section 138(3A) of the Income Tax Ordinance 2001 which now mandates that a tax liability becomes immediately enforceable if upheld by a High Court or Supreme Court, regardless of any ongoing legal proceedings in other courts or forums. He said that this section strips the business community of its constitutional right to appeal. Enforcing tax collection without completing the legal process is a serious violation of justice.
The LCCI President said that another alarming amendment is Section 140(6A), which allows the FBR to freeze bank accounts and recover funds without issuing any prior notice. This creates an atmosphere of uncertainty and fear for businesses. It not only undermines business confidence but also threatens to destabilize the financial system.
He added that the new Section 175C authorizes the FBR to deploy officers to monitor production, services, or stock on any business premises. This is an infringement on business autonomy, privacy and freedom. Are Pakistani businessmen criminals that they must be monitored like this?' questioned Mian Abuzar Shad.
The LCCI President said that amendments to Sections 26 and 27 of the Federal Excise Act now define the use of fake stamps, barcodes or labels as criminal offenses. 'While we stand firmly against forgery,' LCCI leadership cautioned, 'if this law is misused to harass innocent businessmen, it will lead to grave consequences.
He said that FBR has now been empowered to authorize officers from other federal or provincial departments to conduct inspections, searches and seizures. This will open the floodgates to institutional interference, drastically increasing the operational hardships for the business community.
The LCCI leadership demanded immediate withdrawal of the amendments or a parliamentary review process ensuring all stakeholders are heard, consultation with the business community to ensure transparency, balance and trust in tax legislation, expansion of the tax net by bringing new entrants into the system instead of harassing existing, compliant taxpayers.
LCCI Senior Vice President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry said that if the government continues to ignore the voice of the business community, the Lahore Chamber will unite trader bodies across the country and initiate a constitutional, legal and peaceful protest movement.
Former LCCI President Mian Anjum Nisar said that we desire economic stability and national progress, but that requires business-friendly policies — not repressive ones. Policies that destroy investor confidence will hurt Pakistan's economy.
The LCCI leadership said that we support taxation, but it must be fair, just and implemented in a manner that encourages, not punishing the business community.
Copyright Business Recorder, 2025
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