SITE association urges PM to withdraw controversial tax ordinance

KARACHI: The SITE Association of Industry (SAI) has appealed to the prime minister to withdraw the recently promulgated Income Tax Ordinance (Ordinance No IV of 2025), citing serious concerns over its constitutionality and adverse impact on the formal business sector.

In a letter and formal appeal to Prime Minister Shehbaz Sharif, SAI President Ahmed Azeem Alvi acknowledged the government’s ongoing efforts to improve the business environment but warned that the proposed amendments risk derailing these efforts by imposing harsh and disproportionate measures on formal sector businesses.

“The new provisions undermine the documented economy, discourage compliance, and may reverse the progress made in broadening the tax base,” the SAI president stated. “These amendments are not only economically burdensome but also legally problematic. They appear to violate constitutional guarantees, the principles of natural justice, and the fundamental concept of ‘no taxation without representation’ enshrined in Article 77 of the constitution.”

SAI stressed that bypassing parliamentary procedures to implement such sweeping changes sets a troubling precedent and damages investor confidence at a time when economic stability is critically needed.

The SITE association has urged the government to immediately withdraw the controversial amendment.