KARACHI: Leading business figures have voiced strong opposition to the Tax Ordinance Amendments 2025, arguing that flawed government policies are posing a greater threat to Pakistan’s economic stability than any external challenges.
At a press conference held at the Federation House on Saturday, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Vice President Nasir Khan called on Army Chief General Asim Munir to monitor policymakers whom he accused of inflicting long-term harm on the country’s economy. He emphasized that while external enemies pose a threat, damaging internal policies are driving both investors and citizens away.
FPCCI Senior Vice President Saquib Fayyaz Magoon raised serious concerns over the sweeping powers granted to Federal Board of Revenue (FBR) officials under the new ordinance. He warned that these changes allow FBR officers to penalize taxpayers without due process or the right to appeal. Additionally, officials now have authority to recover dues without prior notice and oversee industrial operations, which he said opens the door to widespread corruption.
Magoon questioned whether FBR officers had earned the level of trust required for such unchecked authority and criticized two sales tax regulations—SRO55 and SRO69—highlighting calculation errors and changes in measurement units that are complicating tax filings for businesses. He pointed out inconsistencies in FBR’s approach, noting that while automation has been introduced for goods clearance, Inland Revenue continues to create obstacles for taxpayers.
He further accused the FBR of acting contrary to the goals of the Special Investment Facilitation Council (SIFC), which seeks to build investor confidence. While he expressed support for the prime minister’s target of $100 billion in exports, Magoon said the FBR’s current actions are at odds with that ambition.
Magoon also warned about a potential new ordinance that could eliminate captive power generation, urging the government to consult with stakeholders before proceeding. He stressed that industries have already made significant investments in this area.
Meanwhile, Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Jawed Bilwani labeled the tax amendments as anti-business and detrimental to an already struggling economy. He criticized the lack of stakeholder consultation and expressed frustration that such sweeping changes were introduced without parliamentary debate or industry input.
Bilwani condemned the reliance on excessive advance taxes based on assumed income, saying this approach overlooks the cyclical nature of businesses and could cripple small and medium-sized enterprises (SMEs) and export-focused businesses by choking their working capital.
He also raised alarm over the criminalization of procedural errors, noting that even minor clerical mistakes or technical delays could now result in heavy penalties or prosecution. He emphasized that the ordinance fails to expand the tax net, instead increasing pressure on already compliant taxpayers while leaving major informal sectors like retail, agriculture, and real estate untouched.
Furthermore, Bilwani criticized the government’s decision to enact the ordinance through executive order, bypassing the legislative process.
SITE Association of Industry (SAI) Chairman Ahmed Azeem Alvi urged Prime Minister Shehbaz Sharif to repeal the ordinance. He warned that its provisions would undermine the formal economy, deter tax compliance, and threaten the progress made toward broadening the tax base. Alvi stressed that investor confidence is critical at this stage, and the ordinance risks worsening the country’s economic instability.
