Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Jawed Bilwani on Thursday urged the government to withdraw the Tax Laws (Amendment) Ordinance, 2025, maintaining all chambers of commerce nationwide had opposed the “regressive, anti-business” measure.
In a statement, Bilwani endorsed the views of MNA Mirza Ikhtiar Baig, claiming the lawmaker had rightly noted that the legislation contradicted the government’s stated aim of providing a business-friendly environment. Questioning why such critical changes were made without parliamentary debate or industry input, he claimed it contains harsh, impractical provisions that would severely disrupt formal businesses, discourage documentation, and further erode trust between the private sector and the Federal Board of Revenue (FBR). He warned the government’s repeated practice of burdening the already documented and tax-paying sectors is not only unjust, but also unsustainable.
“One of the most damaging aspects of the ordinance is the imposition of excessive advance tax demands based on presumed income,” he said. “This flawed approach fails to account for sector-specific business cycles and seasonal variations, especially impacting small and medium enterprises and export-oriented units that often operate on tight cash flows,” he said, adding such advance liabilities could paralyze working capital and force many businesses into default or closure.
The KCCI president also pointed to a “troubling” provision granting arbitrary powers to tax officials. The ordinance empowers officers to freeze bank accounts and issue recovery notices without any prior notice or due process. “These unchecked powers are likely to foster a climate of fear and harassment, deterring entrepreneurs and driving away investment,” he warned, noting it also criminalizes procedural non-compliance. Minor lapses, such as clerical errors or delayed filing due to technical issues, now attract severe penalties, heavy fines, and even criminal prosecution, he said, describing such punitive measures as grossly disproportionate and reflecting a lack of understanding of ground realities.
Bilwani maintained the ordinance would not broaden the tax base but rather further burden existing taxpayers while leaving informal sectors untouched. This selective enforcement perpetuates economic injustice and disincentivizes new entrants from entering the formal economy, he added.
Emphasizing that an unpredictable tax policy was a serious concern, he claimed the ordinance undermined transparency and rule of law. Businesses require stability and clarity for long-term planning, he said, adding frequent ad hoc changes in tax laws only fuel uncertainty and drive away investment.
Moreover, said the KCCI president, the amendment contradicts the government’s own agenda of digitalization and simplification. Instead of reducing manual intervention and promoting automated systems, the new provisions increase complexity, paperwork, and the likelihood of discretionary abuse, all of which are major deterrents to tax compliance, he added.
Maintaining that the business community is not opposed to taxation or reform, he said it sought all measures on the basis of fairness, transparency, and broad consultation. He emphasized that reforms should target widening the tax net, encouraging voluntary compliance, and eliminating harassment, not punishing those who are already compliant and contributing to the economy.
He stressed that the government must initiate inclusive dialogue with representatives of trade and industry before taking any further fiscal measures. “If the ordinance is not rolled back promptly, the business community will be left with no choice but to consider united nationwide protests to safeguard the economy and their survival,” he added.