KATI Rejects New Tax Ordinance, Citing Economic Harm

Karachi: The Korangi Association of Trade and Industry (KATI) has firmly opposed the newly enacted Tax Ordinance 2025, claiming it is anti-business, unconstitutional, and harmful to investment prospects. Junaid Naqi, President of KATI, criticized the ordinance, describing the extensive powers granted to tax officials as “economic terrorism.”

According to Naqi, the ordinance allows the Federal Board of Revenue (FBR) to take drastic actions such as freezing bank accounts, seizing property, and sealing factories immediately after a court ruling, without any prior notice to the businesses affected.

“This ordinance is a clear violation of the constitution, judicial independence, and the fundamental right to conduct business in Pakistan,” Naqi stated. “Rather than building trust within the business community, the government is fostering a climate of fear and uncertainty.”

Naqi pointed out that amendments to the Income Tax Ordinance 2001 and the Federal Excise Act 2005 authorize FBR officers to be present in factories and business premises, enabling them to monitor production, stock, and goods movement. He equated this to unwarranted surveillance under the guise of economic oversight.

He cautioned that these stringent measures would not only damage the already struggling economy but also deter future domestic and foreign investment. “This legislation does not serve any individual or department’s interest—it appears to be a coordinated move against the entire business community,” he remarked.

Naqi urged the government to withdraw the ordinance immediately and consult with all stakeholders before implementing such significant reforms.