Business community decries ‘draconian’ tax ordinance

#Business #community #decries #draconian #tax #ordinance

KARACHI: The business community has raised serious concerns over the tax laws (amendment) ordinance, 2025, which states that it creates strong implications for both the business sector and the rule of law – without consulting the ordinance – stakeholders.

The President of the Karachi Chamber of Commerce and Industry (KCCI) Mohammad Judge Bulani objected to the introduction of Section 138 (3A) and 140 (6A) of the Income Tax Ordinance, which subjugates the decisions of the higher courts and also approved the relief of the tax eligibility. He said that this directly disrupts the sanctity of judicial decisions, eliminates the constitutional right of taxpayers’ appropriate action and promotes a forced tax government.

In addition, he said that the registration of Section 175C, inland revenue officers were allowed to deploy in the business premises under ambiguous conditions, creating a violation of privacy and harassment and threats. He added that the officials within private businesses threaten operational independence without transparent standards or judicial supervision and sends a cool message to investors and businessmen.

He also criticized the Federal Excise Act, 2005 amendment, which provides extensive powers for implementation and allowed federal or provincial officers to neglect the purposes for surveillance purposes, and raise concerns about intervention. Adding loose crimes such as “pasteting fake tax stamps” leaves enough room for discretion, discretion and potential abuse.

The President of the KCCI demanded the immediate withdrawal of the ordinance and demanded the government to demand parliamentary debate, which included elected representatives and industry stakeholders. “We reiterate our commitment to the economy’s fair tax and documents, but reject any legislative move that ignores the proper process and threatens legitimate businesses in the pretext of enforcement.”

He called on the President and the Ministry of Law and Justice to maintain constitutional principles and engage in dialogue, rather than implement the authoritarian ordinance, which threatens to further damage Pakistan’s already critical business environment.

The Pakistan Chemicals and Des Merchants Association (PCDMA) has also expressed deep concern over the ordinance, in which it has been declared strict and illegal. PCDMA Chairman Saleem Waleemad and Subcommittee for Income Tax and Income Tax Advisor Danish Saleem have highlighted the dispute that the ordinance was issued without consultation with no pursuit. He said, he has shook the business confidence and has ruined the rule of law.

Volimohim raised special concerns from Section 138 (3A) and 140 (6A) of the Income Tax Ordinance, who said, adding that the controversial tax responsibilities have been immediately recovered and judicial aid has been declared ineffective, even the courts have received relief. He warned, it has harassed the right to a fair decision of taxpayers.

In a separate statement, Chairman of the National Business Group Pakistan, Mian Zahid Hussain, said Pakistan’s offensive tax measures were at risk of destabilizing the economy and discouraging investment.

Hussein, who also guides the forums of businessmen and intellectuals of Pakistan, criticized the new tax law amendment ordinance 2025, which also provides powers to the Federal Board of Revenue (FBR), which includes withdrawal of funds from taxpayers’ bank accounts and to monitor the factories. He warned that these measures could create corruption and damage business confidence. He called for deep consultation from the business community to restore confidence and said that only meaningful reforms would promote revenue and economic stability.