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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.'

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