PTBA urges immediate withdrawal of tax amendments

KARACHI: The Pakistan Tax Bar Association (PTBA) has called for the immediate withdrawal of the Tax Amendments Ordinance 2025, expressing serious concerns over its provisions.

In a letter to President Asif Ali Zardari, the PTBA said the ordinance infringes upon the fundamental rights of taxpayers as guaranteed under the constitution.

The PTBA noted that taxpayers are the backbone of the economy. However, following the 26th constitutional amendment, judicial independence has been curtailed -- even in cases where taxpayers are prima facie entitled to a stay order against alleged tax demands.

It highlighted that taxpayers are now required to deposit 30 per cent of the disputed amount merely to obtain a stay, even from the high courts. This concerning development continues under the Tax Amendments Ordinance 2025, which, the association said, appears to undermine core principles of natural justice and the right to a fair trial.

The PTBA pointed out that the ordinance grants taxation officers unchecked and arbitrary powers, potentially leading to harassment and undue hardship for taxpayers. Furthermore, the right of appeal has effectively been nullified, as demands raised by taxation officers are now recoverable within timelines dictated solely by the officers, rendering appellate remedies redundant and ineffective. “Such unchecked discretion promotes maladministration and injustice,” it added.

The PTBA reiterated that such legislation -- driven by a predetermined mindset -- will have long-term adverse effects on taxpayers’ rights and the country’s investment climate. It warned that investors will be reluctant to invest in Pakistan if administrative authorities are empowered with excessive, unregulated authority while meaningful recourse to appellate remedies is removed.

The association strongly recommended the immediate withdrawal of the ordinance and the suspension of any actions taken in pursuance of it.