logo
APTMA opposes new ‘draconian' tax ordinance, calls for immediate repeal

APTMA opposes new ‘draconian' tax ordinance, calls for immediate repeal

The All Pakistan Textile Mills Association (APTMA) voiced concerns against the newly promulgated Ordinance No. IV of 2025, issued on May 2, terming it 'a draconian measure' with 'far-reaching and concerning amendments to the Income Tax Ordinance, 2001'.
In a statement released on Tuesday, APTMA urged the government to immediately withdraw these amendments and engage with stakeholders 'to ensure that any tax reforms are fair, transparent, and respectful of the rule of law'.
The federal government on Saturday promulgated 'Tax Laws (Amendment) Ordinance, 2025' for immediate/ sudden recovery from taxpayers' bank accounts or other movable/ immovable properties and sealing of business premises after the decision from higher courts without any further notice.
The ordinance has also empowered the Federal Board of Revenue (FBR) to depute tax officials at manufacturing/ business premises to monitor production, supply, and stock of unsold goods.
However, APTMA, one of the country's largest trade organization, expressed concerns that the amendments inserted into Sections 138 and 140 of the Income Tax Ordinance effectively 'strip taxpayers of their legal rights and protections under the law'.
'The changes empower the FBR beyond reason and above the High Courts and the Supreme Court of Pakistan.
'The revised provisions override legal timelines and judgments, granting FBR unfettered authority to enforce its demands regardless of judicial relief,' read the statement.
APTMA warned that the ordinance 'dangerously expands the discretionary powers of the FBR, an institution already frequently criticised for high-handedness and harassment of compliant taxpayers'.
It said that by nullifying court decisions and prescribed timelines, the ordinance undermines the sanctity of the judicial process and the principle of due process enshrined in the constitution.
'It will only exacerbate the climate of fear and uncertainty for legitimate businesses, creating an environment detrimental to investment and growth,' it added.
Meanwhile, APTMA welcomed the Monetary Policy Committee's decision to reduce the policy rate by 100 basis points (bps).
'This is a commendable step that will aid in reviving economic activity and providing some relief to the beleaguered industrial sector. However, APTMA believes that a more substantial reduction in the policy rate was both justified and necessary.'

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Reform bills tabled amid quorum clashes
Reform bills tabled amid quorum clashes

Express Tribune

time3 hours ago

  • Express Tribune

Reform bills tabled amid quorum clashes

Many foreign investors are believed to be borrowing from their domestic banks at lower interest rates (6-7%) and investing in Pakistan's T-bills, which offer a high rate of return (20%). Photo: file The Khyber-Pakhtunkhwa government has introduced a series of new laws aimed at removing barriers to business and trade, streamlining charitable organization registration, providing housing for government employees' families in case of in-service death, offering free legal aid to underprivileged individuals, and tackling climate change challenges. During a session of the provincial assembly held Wednesday, six bills were presented, and two were approved. Among the key legislative developments is the Khyber-Pakhtunkhwa Ease of Doing Business Bill 2025, which seeks to simplify business operations in the province through regulatory reforms and the establishment of a one-window digital portal. All relevant government departments and regulatory bodies will be mandated to integrate with the new portal. An operational unit will also be created to manage the development, maintenance, and upgrading of the portal. The law will apply province-wide and will be implemented following an official government notification. Additionally, the assembly introduced the Khyber-Pakhtunkhwa Government Employees Housing Foundation Bill 2025, which proposes the provision of residential plots to government employees or their families — on a no-profit, no-loss basis — in cases of retirement or in-service death. To enhance the regulation of charitable organizations, the Khyber-Pakhtunkhwa Charities (Amendment) Bill 2025 was also tabled. This move is intended to ensure the Commission's financial self-sufficiency, improve transparency, filter out inactive organizations, and ensure more effective use of public donations. Finally, the assembly introduced the Khyber-Pakhtunkhwa Legal Aid (Amendment) Bill, aimed at providing free legal assistance to the poor and needy. The amendments focus on cost efficiency by eliminating the previously proposed separate Legal Aid Agency and instead assigning the Director General of Prosecution as the head of legal aid efforts, establishing a special wing within the Directorate of Prosecution to handle legal aid services. Earlier, despite repeated quorum objections from the opposition, legislative proceedings continued in the assembly.

K-Electric's EPIC 2025 event brings a different kind of ‘energy' to Habib University
K-Electric's EPIC 2025 event brings a different kind of ‘energy' to Habib University

Business Recorder

time6 hours ago

  • Business Recorder

K-Electric's EPIC 2025 event brings a different kind of ‘energy' to Habib University

The grand finale of K-Electric's (KE) Energy Progress and Innovation Challenge (EPIC) 2025 was held at Habib University on Wednesday. A team from National University of Science and Technology (NUST) that presented a project on tamper-proof PMT-based loadshedding and transformer control was declared the winner, walking away with prize money of Rs1.5 million. EPIC 2025 provided a platform for entrepreneurs, startups, researchers, and academia to develop localised, home-grown solutions that addressed ten 'challenge statements', including 'Real-time fleet tracking and visibility for power utilities', 'Smart monitoring of transmission lines: enhancing grid reliability' and 'Open innovation: driving transformation in the power sector'. Launched in March 2025, the initiative attracted over 250 applications from all over the country. After an internal jury assessment comprising functional heads, 10 projects were shortlisted to compete at the grand finale, featuring solutions ranging from AI-driven demand forecasting to IoT-based fleet management and smart theft detection to an esteemed external panel of jury members, according to a press release issued by the company. The winning NUST team claimed their plug-and-play solution allows them to switch off a PMT remotely, which could greatly reduce the impact of loadshedding to a lower number of customers. The second winner's project, presented by a group from Govt College University Faisalabad, was on demand forecasting automation using an artificial neural network, crucial for grid stability and plant efficiency perspectives. The third winner, from NED University, presented a project called optimized AI model for accurate electricity demand forecast. The runner-up was awarded Rs1 million while the second runner-up was awarded Rs750,000. But it was the solutions and spirit with which they were presented that was invaluable. Other presentations dealt with a variety of themes: curbing electricity theft, improving recovery rates, battery energy storage utilization, pre-emptive transformer level failure detection, and photovoltaic impact analysis. Imagine if a transformer breakdown is detected beforehand. Now imagine loadshedding based on PMTs – technologically not possible at the moment. These are practical questions Pakistan's power sector is asking and their answers were the core discussion points at EPIC 2025. Moonis Alvi, CEO at KE, said he was excited about the potential prospect of utilising the solutions. 'Law-breakers are sometimes smarter than lawmakers. It is my hope that these ideas can help Pakistan's power sector and are scalable. I am looking forward to engaging with the finalists. But this is a continuous process. The engagement needs to continue.' During her address to the audience, Sadia Dada, Chief Distributions and Marcomms Officer, made it clear that any solution would not go through a process of limiting it to KE. 'These solutions will be for the entire power sector in the country.' Speaking to Business Recorder on the sidelines of the event, Dada said the challenges facing Pakistan's power sector, especially on the distribution side, are very unique to our geography. 'It is difficult to find solutions off the shelf. So we want those that are localised and homegrown. This ties in with our localisation agenda. 'Because the people developing these solutions understand the context, most of the finalists are from Karachi. Some of them are from Faisalabad, Islamabad, and Lahore. Having this intellectual capital in the country and not utilise is also a wasted opportunity. I am excited at taking these solutions and implementing them in the KE business model. Talking about loadshedding, Dada said KE cannot provide free electricity to customers who do not pay. 'But there are pockets where there are paying customers. If we can bring down the circumference of the impact of loadshed to a PMT level, that would be a win-win, and one of our finalists has worked on this solution.'

FinMin's post-budget presser marred by journalist boycott
FinMin's post-budget presser marred by journalist boycott

Express Tribune

time16 hours ago

  • Express Tribune

FinMin's post-budget presser marred by journalist boycott

Listen to article Federal Finance Minister Muhammad Aurangzeb is addressing a post-budget press conference, stating that the government tried to provide as much relief as possible to the salaried class. Speaking in Islamabad, Aurangzeb said that out of a total of 7,000 tariff lines, 4,000 have been brought down to zero. He added that these tariff reforms are expected to boost the country's exports. Earlier, the finance minister arrived for the briefing accompanied by the Finance Secretary and the Chairman of the Federal Board of Revenue (FBR). However, journalists boycotted the press conference in protest over the absence of a technical briefing on the budget. Reporters noted that for the past 20 years, it has been standard practice to provide a technical briefing to journalists following the budget. This year, they said, the government broke that tradition. Later, the finance minister instructed relevant officials to persuade the journalists to return. Federal Budget 2025 In line with the International Monetary Fund's (IMF) conditions for fiscal consolidation, Finance Minister Muhammad Aurangzeb maintained a firm stance in the federal budget for 2025–26. Despite this, he extended limited relief to the salaried class and offered incentives aimed at the real estate and construction sectors, seeking to revive industrial activity and spur economic growth. However, the government also unveiled several new revenue measures. A carbon levy of Rs2.5 per litre will be applied to petrol, diesel, and furnace oil starting next fiscal year, with plans to double it the following year. Other tax measures include a 5 per cent levy on large pensions, an 18 per cent tax on imported solar panels, and an increased surcharge on electricity bills to cover both interest and principal debt repayments. Furthermore, the government announced it would begin phasing out tax exemptions currently granted to tribal areas.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store