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Business Recorder
22-07-2025
- Business
- Business Recorder
COAS Munir instructs FBR to have dialogue with businessmen over arrest powers, penalties: FPCCI
While focusing on the recently enacted expansions of the Federal Board of Revenue's (FBR) powers, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh with the trade and industry's delegation met Chief of Army Staff (COAS) Field Marshal Syed Asim Munir, NI (M). who assured them of his full support for the economic growth of the country, according to a FPCCI statement on Tuesday. The development comes days after Pakistan's two largest cities - Karachi and Lahore - faced partial and complete market closures over a strike call by traders against what they called 'anti-business' tax measures introduced in the Finance Act 2025. Karachi, Lahore hit by strike against 'anti-business' tax measures In the Finance Act, the government expanded the FBR powers with Sections 37A and 37B, which empower the tax authority officials with arbitrary arrests; 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(C). 'Mr Atif Ikram Sheikh maintained that the business community is immensely thankful to Field Marshal Asim Munir for immediately directing that the new provisions; particularly those added under Sections 37A and 37B of the Sales Tax Act 1990, pertaining to arrest and detention; be held in abeyance; and, for instructing the FBR to enter meaningful and solution-oriented dialogue with stakeholders and address their concerns,' the FPCCI statement read. The statement further said the delegation had presented a comprehensive overview of the challenges faced by the industrial sector – with particular emphasis on the recently enacted expansions of the FBR's powers. 'Additionally, the GHQ will support economic activities in the country through the platform of Special Investment Facilitation Council (SIFC); fostering an environment of collaboration and trust.' The business community's delegation also called for interest rates to be brought down in line with inflation to stimulate businesses and economic activities. It also highlighted the delay in notification of the Export Facilitation Scheme (EFS) amendments relating to exclusion of cotton and cotton yarn from the scheme; and, imposition of an 18% sales tax on their imports, according to FPCCI statement.
Business Recorder
21-07-2025
- Business
- Business Recorder
Finance Act 2025: BMP demands removal of ‘oppressive' clauses
LAHORE: The Federation of Pakistan Chambers of Commerce and Industry's Businessmen Panel (BMP) has strongly condemned the continuation of controversial fiscal amendments introduced under the Finance Act 2025, asserting that Saturday's successful shutter-down across Punjab and the rest of the country signals a deep rupture in the government's contract with the business community. Addressing the wave of frustration engulfing markets from Lahore to Faisalabad, Gujranwala, Sialkot and beyond, BMP Chairman Mian Anjum Nisar noted that this collective shutdown was not a routine protest—it was a definitive vote of no-confidence in the state's current economic direction. Traders, industrialists, wholesalers and retailers across Pakistan voluntarily ceased operations to register their dismay at the coercive new powers granted to tax officials under the revised law. Mian Anjum Nisar stated that Sections 37A and 37B of the Income Tax Ordinance—empowering tax officers with arrest and prosecution authority—violate the constitutional guarantees of fair treatment and due process. He said these clauses are more reflective of a police state than a participatory economy and have triggered panic throughout formal businesses already struggling with rising costs and limited liquidity. 'These measures were neither debated transparently nor tested through pilot phases. The sudden imposition of unchecked arrest powers, aggressive cash handling limits, and unrealistic digital compliance rules has pushed the entire business landscape into uncertainty,' Nisar warned. 'You cannot reform an economy by intimidating its engine. What the government has misjudged is the deep-rooted unity of Pakistan's trading and industrial community.' He pointed out that even law-abiding businesses with a clear tax history are now rethinking their operations due to the fear of misuse by the enforcement arms of the Federal Board of Revenue. Coupled with hasty implementation of SRO 350 and SRO 709, which mandate complex electronic invoicing and tracking requirements, the situation has left traders vulnerable to penalties without preparation. Anjum Nisar said the nationwide protest was not confined to any single region or sector. 'From mega industrial hubs in Lahore to small-town traders in central Punjab, the shutdown was absolute—and peaceful. This is not political agitation. It is a desperate but constitutional signal from those who have been pushed too far,' he said. BMP stated that instead of expanding the tax base through engagement, the government has opted for punitive actions that are alienating even registered taxpayers. 'This is not how you build trust. If every law-abiding businessperson starts to feel like a criminal, the tax system collapses under its own contradictions,' Nisar remarked. He expressed serious concern that the government's narrative continues to suggest that only a few sectors oppose the reforms. 'This strike disproved that myth. The unity seen across commercial centers in Punjab should be a wake-up call. We are talking about a total industry halt—a shutdown of production, supply chains, and sales from top to bottom,' he said. While acknowledging the establishment of a grievance redressal committee by FPCCI and the Ministry of Finance, BMP criticized the lack of urgency in addressing the issues. 'At this stage, verbal commitments are not enough. The government must issue written notifications immediately reversing or suspending the most dangerous aspects of these laws,' Nisar insisted. The Businessmen Panel emphasized that the business community has always been in favor of responsible reforms and progressive digitization. However, it cannot support a system that is imposed overnight, without education, infrastructure, or practical rollout plans. 'Pakistan's economy does not run on apps and directives. It runs on trust, predictability, and dialogue,' he added. He said BMP had repeatedly presented constructive suggestions, including timelines for documentation, gradual onboarding of digital systems, and protections against harassment. 'Unfortunately, the state continues to legislate from a distance, without consulting the very people who will bear the brunt of these policies,' Anjum Nisar lamented. He warned that if the Finance Act is not amended in the coming days, the economic consequences could extend beyond business closures to investment flight, job losses, and reduced exports. 'Pakistan's productive class cannot afford to operate in fear. We will not be spectators to our own collapse,' Nisar said. BMP reiterated its complete support for the constitutional right to protest and expressed pride in how peacefully and effectively the strike was observed across the country. 'The discipline and unity shown on July 20 have restored our belief that business owners can still come together for the nation's economic future. But that unity must now be respected—not ignored,' the chairman said. The Businessmen Panel demanded that the government issue official notifications to immediately withdraw Sections 37A and 37B, revise SRO 350 and SRO 709 with stakeholder input, and suspend punitive cash transaction rules until a proper mechanism is agreed upon. 'We are not seeking confrontation. We are demanding correction,' Mian Anjum Nisar said. 'If the government fails to act now, the business community will be forced to reconsider how—and whether—it continues to operate under such conditions.' Copyright Business Recorder, 2025
Business Recorder
19-07-2025
- Business
- Business Recorder
Karachi, Lahore hit by strike against ‘anti-business' tax measures
Pakistan's two largest cities - Karachi and Lahore - faced partial and complete market closures over a strike call by traders against what they called 'anti-business' tax measures introduced in the Finance Act 2025. In the Finance Act, the government expanded the Federal Board of Revenue (FBR) powers with Sections 37A and 37B, which empower FBR officials with arbitrary arrests; 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(C). July 19 strike call: govt invites trade leaders for talks The business community termed these measures 'anti-business' and announced a nationwide strike on July 19 (today). They also called for the restoration of the Final Tax Regime for exporters. However, the business community later appeared divided, with the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) postponing the protest following talks with the government, while the Karachi Chamber of Commerce and Industry (KCCI) vowing to go ahead with the strike. It is for the first time that a complete strike has been witnessed in Karachi's New Sabzi Mandi. The KCCI spearheaded the strike on Saturday, backed by the Lahore Chamber of Commerce & Industry (LCCI), Hyderabad Chamber of Small Traders & Small Industry (HCSTSI), and others. Meanwhile, Pakistan's capital Islamabad reportedly remained largely affected. United Goods Transport Alliance Patron in Chief Malik Shabbar Khan told Business Recorder that two big transport alliances in the country, including United Goods Transport Alliance and Pakistan Goods Transport Alliance, had supported the KCCI. 'Today we have stopped all bookings, but goods transport takes five days to come to a halt,' Khan said. 'What's more, we will be affected by this black law. Let me give you an example, when a goods truck goes to Karachi from Peshawar and comes back, it has to pay around Rs100,000 in terms of tolls and various challans. We talked to the KCCI leaders that if the demands are not fulfilled, we can go on strike once or twice a week. It will be decided later after meeting with the business community.' Veteran fruits merchant Haji Mehboob Shair said, 'It is for the first time in the history of the country that the complete strike has been witnessed in Sabzi Mandi'. According to Shair, a large number of trucks loaded with fruits and vegetables come to the Sabzi Mandi daily, but they did not come on Saturday. Meanwhile, main markets and commercial areas in Karachi remained closed till filing of this report at 3pm, while small number markets in Clifton, Landhi and other areas remained open in the metropolitan city. Finance Act 2025 tightens tax rules for businesses, filers KCCI president Muhammad Jawed Bilwani briefed the media late Friday night with other business leaders about a meeting with Special Assistant to the Prime Minister (SAPM) on Industries Haroon Akhtar Khan attended by a number of chambers via Zoom. 'Business leaders were given no surety in writing,' he said, announcing the KCCI decision to proceed with the strike. LCCI president Mian Abu Zar Shaad stated that Lahore chamber had decided to join the strike in solidarity with the broader business community. Hyderabad traders also supported the strike call, with commercial areas of the city, including Saddar Bazaar, Resham Bazaar, Anaj Mandi, Market Tower, and others remaining closed during the day. FPCCI postponed the strike - a call that was followed by chambers and associations of Rawalpindi, Sialkot, Gujranwala, Quetta, Khanewal, Multan, Bajaur and others.
Express Tribune
15-07-2025
- 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.
Express Tribune
14-07-2025
- 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."
