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Express Tribune
a day ago
- Business
- Express Tribune
Traders call off strike after agreement with govt over tax penalties
The business community has postponed the countrywide strike after successful talks with the government over certain budgetary measures introduced through the Finance Act 2025. A day earlier, the federal government invited representatives of all trade bodies for negotiations after Karachi's business community and transporters announced a countrywide wheel-jam strike scheduled for July 19. The Karachi Chamber of Commerce and Industry (KCCI) had called the strike in protest against five key measures incorporated into the federal budget for the current fiscal year, along with 32 anomalies in the Finance Act. KCCI opposes Sections 37A and 37B of the Finance Act, which, it claims, grant the Federal Board of Revenue (FBR) arbitrary arrest powers. It also objects to Section 21(S), which imposes harsh penalties on cash transactions of Rs200,000 or more; mandatory digital invoicing under SRO 709; and the imposition of E-Bilty under Section 40. Read More: Aurangzeb offers talks to avert July 19 strike According to the Ministry of Finance, a joint meeting was held on Tuesday between government officials and business community representatives. The meeting was chaired by Finance Minister Muhammad Aurangzeb and attended by members of chambers of commerce, trade organisations, and senior government officials. The meeting included a detailed review of the traders' concerns, particularly regarding Section 37A and other contentious provisions of the Finance Act 2025. During the session, a committee was formed under Prime Minister's Special Assistant Haroon Akhtar Khan to address the business community's reservations. It was also decided that the strike would be postponed until the committee completes its work. Also Read: SCCI backs strike against tax measures The finance minister assured traders of the government's full cooperation and transparency, stating: 'The government's objective is to curb large-scale tax fraud, not to harass honest businesses.' The committee will also include Minister of State for Finance Bilal Azhar Kayani, Prime Minister's Coordinator Rana Ehsan Afzal, the Chairman of the FBR, and representatives nominated by the business community. The committee is expected to conduct detailed consultations over the next 30 days and present a consensus-based, practical solution to the federal cabinet. It was agreed that the traders' concerns regarding transactions will be addressed, and efforts will be made to ensure that the business community does not face unnecessary difficulties.
Business Recorder
a day ago
- Business
- Business Recorder
Traders agree to defer strike after progress in talks with govt, says Finance Ministry
The government on Tuesday agreed to form a high-powered committee to address the business community's concerns over Section 37A of the Finance Act 2025, prompting traders to defer their planned nationwide strike for 30 days. The decision was made during a meeting chaired by Finance Minister Senator Muhammad Aurangzeb in Islamabad, attended by representatives of major chambers of commerce, trade bodies, and business associations, the Finance Ministry said in a statement. The minister assured the business community that the government's intention is to curb tax evasion, not to harass honest businesses. To facilitate dialogue, a committee will be constituted under Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan. The body will also include Minister of State for Finance Bilal Azhar Kayani, PM's Coordinator on Trade Rana Ehsan Afzal Khan, FBR Chairman, and nominated business leaders. KCCI, transporters announce July 19 strike against Finance Act provisions The committee will hold detailed consultations over the next 30 days and submit a consensus-based proposal to the Prime Minister and federal cabinet. Business representatives voiced strong reservations regarding Section 37A and its implications for transactions. The government acknowledged these concerns and pledged to ensure that no undue burden is placed on legitimate enterprises. The strike call will remain suspended while the committee completes its work.
Arab News
2 days ago
- Business
- Arab News
Nationwide strike looms as Karachi business leaders, transporters unite against ‘anti-business' tax law
KARACHI: Pakistan's largest business chamber has joined forces with goods transporters from across the country to call for a nationwide strike this week on July 19 in protest against key provisions in the government's new Finance Act 2025, which they say threaten to paralyze economic activity and stifle trade. The president of the Karachi Chamber of Commerce & Industry (KCCI), Muhammad Jawed Bilwani, announced the planned shutdown at a press conference on Monday, flanked by senior chamber officials and leaders of multiple transport alliances. The strike, they warned, will halt the movement of goods and bring business operations to a grinding halt if the federal government fails to suspend what they describe as 'anti-business' measures. 'Unless the government puts all these measures in abeyance, the nationwide strike scheduled for July 19 will take place with full force, bringing economic activity across the country to a grinding halt,' Bilwani said, according to the official statement. The business community says more than 50 trade associations nationwide have pledged formal support for the strike, signaling what could be one of the biggest shutdowns in Pakistan in recent years if the deadlock persists. The chamber has listed five key demands, including withdrawal of new sections that grant the Federal Board of Revenue (FBR) powers to arrest traders, penalties on cash transactions above Rs200,000, mandatory digital invoicing, a new e-bilty requirement for goods transporters, and the restoration of the Final Tax Regime for exporters. Bilwani said transporters' associations had pledged 'unwavering solidarity' with the business community and committed to a complete wheel-jam strike that will stop the movement of trucks nationwide on July 19. 'No vehicle will move… in absolute unity with the business community,' he said. This is not the first time Pakistan's business community has threatened mass shutdowns in response to tax measures. But the show of unity between traders and goods transporters has raised fears of significant supply chain disruptions. Bilwani said while the Ministry of Finance has made informal contact with the chamber, there has been no official commitment to roll back the controversial measures. He insisted that 'only upon suspension of these provisions' would the business community agree to any further talks with lawmakers. Chairman of the Businessmen Group (BMG) Zubair Motiwala, also speaking at the event, warned that the strike was a last resort: 'While the business community does not favor frequent strikes, the prevailing conditions have left no other option,' he said, according to the KCCI statement. Transport leaders, including representatives of the Pakistan Goods Transport Alliance and other associations, declared their 'full and unconditional support' for the strike and pledged to remain aligned with KCCI's demands 'regardless of the consequences.'
Business Recorder
2 days ago
- Business
- Business Recorder
Transporters too support July 19 strike call
KARACHI: President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Jawed Bilwani while strongly reaffirming the business community's uncompromising stance against the five key anti-business measures and 32 anomalies introduced in the Finance Act 2025, urged the federal government to immediately suspend these provisions and issue a formal notification to that effect. Addressing a press conference at the KCCI on Monday, flanked by representatives from goods transporters' associations and alliances from across Pakistan who were led by Chairman Pakistan Goods Transport Alliance Malik Shahzad Awan, Bilwani made it clear that unless the government puts all these measures in abeyance, the nationwide strike scheduled for July 19 will take place with full force, bringing economic activity across the country to a grinding halt. Bilwani emphasised that only upon suspension of controversial provisions will the business community engage in any dialogue with lawmakers. He reiterated KCCI's demand for the immediate withdrawal of Sections 37A and 37B of the Finance Act, which empower FBR officials with arbitrary arrest powers; Section 21 (S), which imposes harsh penalties on cash transactions of Rs. 200,000 or more; mandatory digital invoicing under SRO 709; and the imposition of E-Bilty under Section 40(C). He also called for the restoration of the Final Tax Regime for exporters. Jawed Bilwani said that the leaders of the transporters associations have expressed unwavering solidarity with KCCI and confirmed their active participation in the upcoming strike. The transporter alliances declared their full and unconditional support, committing to remain fully aligned with KCCI's demands and to stand united until these are met, regardless of the consequences. They announced a complete wheel-jam strike, declaring that no vehicle will move on July 19, in absolute unity with the business community. Copyright Business Recorder, 2025
Express Tribune
2 days ago
- Business
- Express Tribune
Aurangzeboffers talks to avert July 19 strike
The federal government on Monday invited representatives of all trade bodies for talks after Karachi's business community and transporters announced a countrywide wheel-jam strike on July 19 in protest against certain budgetary measures introduced through the Finance Act 2025. Speaking at the Overseas Investors Chamber of Commerce and Industry (OICCI) in Karachi, Finance Minister Muhammad Aurangzeb invited all chambers of commerce and trade associations on Tuesday (today) to discuss their concerns over the Finance Act. The minister's talks offer came after Goods Carrier Association head Malik Shahzad Awan and Karachi Chamber of Commerce and Industry (KCCI) President Javed Bilwani addressed a joint press conference regarding the strike call for July 19. "All transporters will participate in the KCCI's strike on July 19. The wheel jam strike will continue until the KCCI's demands are met. We are also prepared for a longer duration strike," Malik Shahzad Awan told the media persons. The KCCI called the strike against "five key measures" incorporated in the federal budget for the current fiscal year and 32 anomalies in the Finance Act. At the joint press conference, Bilwani made it clear that unless the government put all these measures in abeyance, there would be a strike on July 19. The KCCI opposes Sections 37A and 37B of the Finance Act, which it claims, empowers the FBR with arbitrary arrest powers; Section 21(S), that imposes harsh penalties on cash transactions of Rs200,000 or above; mandatory digital invoicing under SRO 709; and the imposition of E-Bilty under Section 40©. At the OICCI, the finance minister said that he would listen to the position of all the chambers and associations and also explain his position. "All chambers should come after reading the current law. We have put many safeguards in the law against sales tax fraud and other issues," he said. Aurangzeb dismissed the criticism as "propaganda" regarding the enhanced powers granted to the Federal Board of Revenue (FBR), which, he said, aimed to counter large-scale sales tax fraud. He said that the additional powers apply to cases of over Rs50 million tax evasion and not on ordinary businesses. "The new legal tools have been implemented solely to prevent fraudulent activity related to sales tax," Aurangzeb said. "An important meeting with presidents of chambers will be held tomorrow [today]. The government will explain the scope and intent of the FBR's actions to business leaders," he said. Earlier, Biliwani, the KCCI president, insisted on the demand for the immediate withdrawal of the "controversial" Sections of the Finance Act. He also called for the restoration of the Final Tax Regime for exporters. Bilwani revealed that the KCCI was being approached by the Finance Ministry, and while other efforts were being made to resolve the issues through dialogue, but added that there had been no official assurance or notification to suspend the controversial measures. "The KCCI has requested the government to hold these matters in abeyance until a mutually beneficial and constructive solution is found," he said, warning that the strike would "not be postponed until and unless these demands are fully accepted". Responding to a query, Bilwani stressed that the entire business community was fully united and KCCI continued "to receive overwhelming support" from across the country. "More than 50 formal letters have been received from various business associations, reaffirming their solidarity with the KCCI."
