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Home Breaking News

Business community expressed displeasure over Tax Laws amendments

byCT Report
06/05/2025
in Breaking News, Chambers & Associations, Latest News, Pakistan Chambers
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RAWALPINDI: The business community has expressed serious concern over the promulgation of the Tax Laws (Amendment) Ordinance, 2025, terming it a direct violation of business autonomy and a blow to investor confidence.

In a statement, Rawalpindi Chamber of Commerce and Industry (RCCI) President Usman Shaukat voiced strong opposition to the sweeping powers granted to the Federal Board of Revenue (FBR) under the new Ordinance.

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“We categorically reject the arbitrary and coercive provisions introduced through this Ordinance,” said Shaukat adding “allowing tax officers to be stationed at markets and business premises is an outright infringement on business freedom and will lead to increased harassment under the guise of documentation and compliance.”

It is noteworthy that the Ordinance gives authority to the FBR to recover tax liabilities by directly withdrawing funds from a taxpayer’s bank account if their appeal is rejected by the High Court or dismissed by the Supreme Court. This overrides the previously established procedure under Sections 137(2) and 138(1) of the Income Tax Ordinance, 2001, which required the issuance of separate notices before any recovery action could be taken.

“These coercive measures implemented even after a High Court ruling, pose a grave threat to the right of appeal, especially when enforced before the Supreme Court has given its verdict,” Shaukat added.

According to the statement issued here on Monday, the RCCI also highlighted legal ambiguities within the Ordinance, particularly the lack of clarity on whether the FBR will promptly refund any recovered amounts if the case is eventually decided in the taxpayer’s favor.

Moreover, the Chamber condemned the provision allowing tax officers to be physically deployed at business premises to monitor daily operations, calling it excessive, invasive, and harmful to business confidence.

The RCCI has called for the immediate withdrawal of the Ordinance and urged the government to initiate dialogue with stakeholders before introducing legislation with such far-reaching consequences for the business community.

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