Tax Ordinance withdrawal demanded
People opting for scheme will not be abiding by most of tax laws. PHOTO: BLOOMBERG
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Rejecting the recently promulgated Tax Laws (Amendment) Ordinance 2025, traders have demanded its immediate withdrawal, warning that it could severely damage Karachi's industry and trade. They urged the government to repeal the ordinance in the broader interest of the business community.
President SITE Superhighway Association of Industries (SSHAI) Pervaiz Masood said the government allowed tax authorities to recover taxes from industries what he termed as "at gunpoint", which is an unlawful and unconstitutional act.
The ordinance that allows the revenue-collection authority to freeze bank accounts, deploy staff at sites, and offers no right of appeal to taxpayers, will seriously impact the country's business confidence, he said. Not only will it discourage investments at a local level, but industries may relocate to other countries to avoid harassment.
The tax authority is reluctant broaden its taxpayers' net across the country, instead, continues to target taxpaying industrialists who are contributing to the economy even with severe challenges and issues, he said. The FBR should explore alternative sectors such as real estate and agriculture to enhance its tax revenues. It is ironic that one ordinance threatens industries, while another
The Federal B Area Association of Trade and Industries (FBATI) categorically rejected the recently introduced Tax Laws (Amendment) Ordinance, 2025, describing it as undemocratic, unconstitutional, and a death warrant to industries.
FBATI President Sheikh Muhammad Tehseen denounced the ordinance for granting disproportionate authority to the 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 Federal Board of revenue (FBR) to execute immediate enforcement measuressuch as freezing accounts, confiscating property, and sealing business premisesonce a final ruling is issued by the High Court or Supreme Court, with no requirement for additional notice.
The ordinance also allows the FBR personnel to be physically deployed within factories and commercial sites to oversee production, stock levels, and the movement of goods. The FBATI has condemned the measures, calling it 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."
Meanwhile, during a high-level meeting held at the Karachi Chamber of Commerce and Industry (KCCI) on Tuesday, both KCCI and the Rawalpindi Chamber of Commerce and Industry (RCCI) unanimously rejected the controversial Tax Ordinance (Amendment) 2025 but also called for the formation of a national alliance of chambers under the Inter-Chambers Harmony Committee to amplify their collective voice and demand urgent pro-business reforms from the government.
The meeting was held during the visit of RCCI delegation to KCCI aiming to strengthen ties and chart a unified path forward.
Businessmen Group (BMG) Chairman Zubair Motiwala, who joined the meeting via Zoom, emphasised that fragmentation among chambers has historically undermined their influence.
"We must raise a unified voice and work collectively to address the widespread challenges the business community is facing", he stressed. Referring to controversial government directives such as SRO709, SRO350, and the Tax Ordinance (Amendment) 2025, Motiwala warned that such policies are creating an environment of harassment and uncertainty.
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