TPAP, PRIME raise concerns over tax amendments

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ISLAMABAD: Taxpayers Alliance Pakistan (TPAP) and the Policy Research Institute of Market Economy (Prime) have jointly expressed serious concerns over the recently issued tax laws (amendment) ordinance, 2025.

In a joint statement issued on Wednesday, the two organizations argued that some provisions within the ordinance could potentially damage basic legal security measures and principles that are necessary for a fair and transparent tax system.

The ordinance, which amended Section 138 and 140 of the Income Tax Ordinance, 2001 (2001), has given rise to a considerable debate between legal experts, tax professionals, businesses and civil society. Although its purpose is to accelerate tax collection and improve implementation, stakeholders are concerned that it can lead to negative implications of the taxpayer’s rights and procedures.

TPAP Chairperson, Raja Aamir Iqbal, noted: “These amendments will further backed existing taxpayers and discourage potential taxpayers from entering the tax base. Such policies can benefit from the acquisition of short -term taxes, but the economic development of the sector, but the economic development of the sector, but the economic development of the land, but the economic development of the land, but the investment of the investment, but the economic development, but the economic development, but the economic development of the investment. Can promote.

“A balanced approach is very important to promote a favorable business environment and sustainable economic development,” he added.

These provisions provide the Federal Board of Revenue (FBR) to the expansion authority to enforce receipts, even when a taxpayer can seek appellate review or seek legal treatment. This raises constitutional and legal concerns, especially about the right to a fair hearing and the right to practice. Several legal professionals have noted that the ordinance sets the protection of judicial ideas and procedures.

The principle that people have the opportunity to listen to before the implementation is a stone of administrative justice. Reducing this right can affect public confidence in the tax administration and the judiciary.

Empowering tax authorities, even in the presence of ongoing legal challenges, empowering responsibilities can increase the risk of excessive implementation. There is concern that such a discretion without proper scrutiny and balance can result in unannounced results, especially controversial taxpayers facing controversial diagnosis. At present, more than 108,000 tax cases are pending in various courts of Pakistan, including income of about Rs 44.457 trillion. This back blog highlights systemic challenges in resolving tax disputes and emphasizes the need for a balanced implementation rather than speedy action without any convenience.

Predictions and justice are very important in the tax administration to promote business confidence. Sudden implementation measures, especially near the end of the fiscal year, can be considered as efforts to meet the targets of taxpayers without proper convenience. Such impressions can discourage investment and create uncertainty in both domestic and international investors. The International Monetary Fund (IMF) has highlighted that Pakistan’s tight tax base and challenging in the tax administration are aid to economic threats.

In its recent diagnosis, the IMF noted that strengthening governance and ensuring that appropriate tax methods must be ensured to promote proper investment environment.

TPAP and prime have emphasized the need to balance the mandatory balance of taxes with coalition organizations, with constitutional reservations and judicial surveillance. Legal experts have also warned against legislation that can reduce the role of the judiciary in deciding tax matters. A well -taxing system encourages voluntary compliance through transparency and justice. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed concern over the sudden taxation measures, stating that such measures can damage business confidence and prevent investment. The FPCCI advocates a balanced approach that ensures compliance with taxpayers’ rights.

The Organization for Economic Cooperation and Development (OECD) recommends that the tax administration adopt a transparent and fair procedure, ensure that taxpayers have the right to appeal and its implementation measures are proportional. The purpose of these excellent methods is to build trust in the tax system and encourage voluntary compliance, he said.

Under the many reforms proposed by commissions and donor reports, the element of belief and transparency was highlighted. In addition, any change in the tax code besides the finance bill budget was discouraged. Despite the FBR budget proposals, the sudden implementation of major changes in compliance rules jeopardizes a fair and transparent financial process and increases uncertainty about tax laws. Businesses are already pressing more than hunter tax methods such as Business Chaking WHT tax governments, excessive documents, excessive import stage tax, while refund and discounts, which should be faster and automated, are more delayed by their normal timeframe. Such sudden measures will only increase the distrust of the government, increase the economy informally and hinder growth.

In light of these concerns, the TPAP and the prime jointly request the government to ensure that taxpayers maintain the right to be heard before the implementation operations, keep the implementation procedures in accordance with proper action and judicial safety measures, supporting tax -related issues and supporting taxpayers.