Tax Ordinance Sparks Concerns Among Business Leaders

KARACHI: President of the Karachi Chamber of Commerce and Industry (KCCI), Muhammad Jawed Bilwani, has raised serious concerns regarding the Tax Laws (Amendment) Ordinance, 2025, highlighting its potential adverse effects on the business community and the legal framework. The ordinance was introduced without consulting stakeholders or holding a parliamentary debate.

Jawed Bilwani criticized the new provisions, particularly Sections 138(3A) and 140(6A) of the Income Tax Ordinance, which allow for the immediate recovery of disputed tax liabilities. These sections override court judgments and grant tax authorities the power to collect taxes even when judicial relief has been provided, challenging the authority of court decisions and the constitutional right to due process.

Bilwani also pointed to Section 175C, which permits inland revenue officers to be stationed at business premises under unclear conditions. He warned that this could lead to privacy violations and create a climate of harassment, undermining operational independence and deterring potential investors and entrepreneurs.

The amendments to the Federal Excise Act, 2005, were also criticized for granting extensive enforcement powers and the ability to deploy federal or provincial officers for monitoring. Bilwani noted that these powers, along with vaguely defined offenses such as “affixing counterfeit tax stamps,” could lead to arbitrary enforcement and misuse.

In response to the ordinance, the President of the KCCI called for its immediate withdrawal and urged the government to engage in parliamentary debate with input from both elected representatives and industry stakeholders. He emphasized the need for fair taxation and economic documentation but rejected any measures that threaten legitimate businesses by bypassing due process.

Bilwani appealed to the President and the Ministry of Law and Justice to uphold constitutional values and seek dialogue rather than imposing unilateral ordinances, warning that such actions could further destabilize Pakistan’s business environment.