KARACHI: President Karachi Chamber of Commerce and Industry Muhammad Jawed Bilwani, while referring to strong reservations expressed not only by Karachi Chamber but also by FPCCI and all other Chambers of Commerce across the country against Tax Ordinance Amendment 2025, termed it a regressive, anti-business move that poses a serious threat to Pakistan’s already fragile economy.
In a statement issued, President Bilwani lauded the efforts and clear stance of MNA Dr. Mirza Ikhtiar Baig, who rightly pointed out that the ordinance is in complete contradiction to the government’s stated aim of providing a business-friendly environment. He emphasized that key trade bodies such as FPCCI, KCCI and other Chambers have formally protested against the ordinance and questioned why such critical changes were made without parliamentary debate or industry input. President KCCI acknowledged Dr. Baig’s principled stand, his deep understanding of the issues, and his ongoing support for the cause of Pakistan’s business community.
President KCCI, while demanding immediate withdrawal of the controversial ordinance, stated that the amendment contains harsh, impractical provisions that would severely disrupt formal businesses, discourage documentation, and further erode trust between the private sector and the Federal Board of Revenue (FBR). He warned that the government’s repeated practice of burdening the already documented and tax-paying sectors is not only unjust but also unsustainable.
“One of the most damaging aspects of the ordinance is the imposition of excessive advance tax demands based on presumed income. This flawed approach fails to account for sector-specific business cycles and seasonal variations, especially impacting small and medium enterprises and export-oriented units that often operate on tight cash flows”, he said, adding that such advance liabilities could paralyse working capital and force many businesses into default or closure.
He also pointed out that another deeply troubling provision is the grant of arbitrary powers to tax officials. The ordinance empowers officers to freeze bank accounts and issue recovery notices without any prior notice or due process, which is a clear violation of the principles of natural justice. “These unchecked powers are likely to foster a climate of fear and harassment, deterring entrepreneurs and driving away investment.”
Bilwani noted that the ordinance also criminalizes procedural non-compliance. Minor lapses, such as clerical errors or delayed filing due to technical issues, now attract severe penalties, heavy fines, and even criminal prosecution. Such punitive measures are grossly disproportionate and reflect a lack of understanding of ground realities faced by taxpayers, particularly in a tax system that is still in the process of automation and reform.
He was of the opinion that the amendment does nothing to broaden the tax base. It once again places the burden on those who are already in the system while leaving vast informal sectors — including retail, real estate, and agriculture — untouched. This selective enforcement perpetuates economic injustice and disincentivizes new entrants from entering the formal economy.
Highlighting the unpredictability of tax policy as a serious concern, Jawed Bilwani said by promulgating this ordinance through an executive order and bypassing the parliamentary process, the government has undermined transparency and rule of law. Businesses require stability and clarity for long-term planning, and frequent ad hoc changes in tax laws only fuel uncertainty and drive away investment.
Moreover, this amendment contradicts the government’s own agenda of digitalization and simplification. Instead of reducing manual intervention and promoting automated systems, the new provisions increase complexity, paperwork, and the likelihood of discretionary abuse, all of which are major deterrents to tax compliance, he added.
He reiterated that the business community is not opposed to taxation or reform, but it demands that all measures must be based on fairness, transparency, and broad consultation. He emphasized that reform should target widening the tax net, encouraging voluntary compliance, and eliminating harassment, not punishing those who are already compliant and contributing to the economy.
He stressed that the government must initiate inclusive dialogue with representatives of trade and industry before taking any further fiscal measures. “If the ordinance is not rolled back promptly, the business community will be left with no choice but to consider united nationwide protests to safeguard the economy and their survival”, he warned.
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