Amended Tax Ordinance Sparks Economic Concerns

Karachi: Faisal Moiz Khan, President of the North Karachi Association of Trade and Industry (NKATI), has voiced strong opposition to the newly issued Tax Laws (Amendment) Ordinance 2025. He criticized the ordinance for being enacted without stakeholder consultation or parliamentary debate and warned that it could have devastating effects on the nation’s economy.

Faisal Moiz Khan expressed significant concerns, stating that the ordinance undermines judicial decisions, violates taxpayers’ constitutional rights to due process, and fosters a coercive tax regime. The ordinance grants the Federal Board of Revenue (FBR) enhanced powers, enabling it to freeze bank accounts, confiscate properties, and seal factories without prior notice, even post-judicial decisions. He described these measures as an affront to the Constitution, judiciary, and economic freedom.

The NKATI President highlighted the lack of consultation with key stakeholders and the absence of parliamentary debate in implementing the ordinance. This, he argued, has eroded business community trust and compromised the rule of law. He expressed particular concern about Sections 138(3A) and 140(6A) of the Income Tax Ordinance, which override judicial relief and render disputed tax liabilities immediately recoverable, infringing on taxpayers’ rights to a fair defense.

Faisal Moiz Khan called for the immediate withdrawal of the ordinance and urged the government to engage in constructive dialogue with elected representatives and industry stakeholders before enacting such measures. He affirmed support for fair taxation and economic documentation but rejected legal actions that target legitimate businesses while bypassing constitutional and legal procedures.

Additionally, he appealed to the President of Pakistan and the Ministry of Law and Justice to adhere to constitutional principles and prioritize dialogue over authoritarian ordinances that could further harm Pakistan’s fragile business environment.