KCCI Calls for Immediate Withdrawal of Tax Ordinance Amendment 2025

KARACHI: The Karachi Chamber of Commerce and Industry (KCCI), led by President Muhammad Jawed Bilwani, has demanded the swift retraction of the Tax Ordinance Amendment 2025, describing it as a regressive move that could further destabilize Pakistan’s economy.

Bilwani highlighted widespread disapproval from key business entities, including the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and various other chambers, who argue that the amendment undermines the government’s promise of a business-friendly environment. He credited MNA Dr. Mirza Ikhtiar Baig for his support and understanding of the business community’s concerns.

The amendment, according to Bilwani, introduces stringent provisions that threaten to disrupt formal businesses, discourage documentation, and damage trust between the private sector and the Federal Board of Revenue (FBR). He criticized the imposition of advance tax demands based on assumed income, which he warned could cripple small and medium enterprises and export-focused businesses.

Bilwani also condemned the ordinance for granting tax officials the power to freeze bank accounts and issue recovery notices without due process, which he argued would foster fear and deter investment. Additionally, he criticized the penalization of procedural non-compliance, stating that severe measures for minor lapses are disproportionate.

The ordinance, he added, fails to expand the tax base, instead placing undue pressure on those already complying, while leaving informal sectors largely unaddressed. This, he noted, undermines economic equity and discourages new entrants into the formal economy.

Bilwani warned that bypassing parliamentary debate in favor of executive orders undermines transparency and stability, essential for business planning and investment. He argued that the amendment contradicts the government’s digitalization goals by increasing complexity and potential abuse.

Emphasizing that the business community supports fair and transparent reforms, Bilwani stressed the need for dialogue with trade representatives before implementing new fiscal measures. He cautioned that without prompt withdrawal, the business community might resort to nationwide protests to protect their interests and the economy.