AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has called for the immediate repeal of Sections 37A and 37B of the Sales Tax Act, denouncing them as draconian measures that grant excessive arrest powers to tax officials. KCCI President Jawed Bilwani and Chairman of the Businessmen Group Zubair Motiwala have warned that these provisions threaten Pakistan’s business environment and deter investment.
During a press conference at the KCCI Auditorium, Bilwani and Motiwala criticized the government for failing to address business concerns during the recent Business Anomalies Committee meeting. They announced ongoing protest campaigns, including the display of banners across Karachi and Thursday’s press conference.
The press conference was attended by several key figures, including Vice Chairmen Anjum Nisar and Mian Abrar Ahmed, as well as representatives from industrial town associations and former KCCI presidents. They expressed unanimous opposition to Section 37A, claiming it is incompatible with conducting business in Pakistan.
Bilwani highlighted the overwhelming number of complaints from business owners worried about the implications of the new law. He argued that the law unfairly targets compliant taxpayers, rather than focusing on fraudulent practices.
The KCCI president noted that only a small percentage of documented taxpayers are engaged in malpractice, yet the entire taxpayer community is at risk of being harassed under these sections. He criticized the Federal Board of Revenue (FBR) for its enforcement failures, pointing out that most court cases filed by the FBR have been decided in favor of taxpayers.
Motiwala emphasized the risk of corruption if arrest powers are misused. He warned that the mere existence of Section 37A could discourage existing businesses and halt expansion plans, as investors might avoid investing in Pakistan’s economy under these conditions.
The KCCI has urged the Prime Minister to repeal the contentious sections and form a special committee comprising chamber presidents and FBR officials to address identified anomalies. The business community seeks urgent amendments to ensure the tax filing process remains feasible.
The press conference also saw participation from other regional chamber presidents via Zoom, underscoring a nationwide call for legislative change in the interest of a stable business environment.