FPCCI rejects tax ordinance, warns of taxpayer harassment

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has rejected the newly implemented Tax Laws (Amendment) Ordinance, 2025, arguing that it violates taxpayers’ rights.

The FPCCI has pledged to support a legal challenge against the ordinance in court.

Addressing a press conference at the Federation House, Senior Vice President Saqib Fayyaz Magoon voiced serious concerns over the tax amendment, warning that it would pave the way for corruption and intimidate investors.

“On the one hand, the government is implementing a faceless system in customs, while on the other, it is deploying FBR officials to factories and manufacturing units via inland revenue,” Magoon said.

He questioned whether these FBR officers had been issued “certificates of honesty”, arguing that their presence would likely result in increased corruption and harassment.

Magoon criticised the “extraordinary powers” granted to FBR representatives under the ordinance, including the removal of taxpayers’ right to appeal.

“It is like skipping the FIR process and going straight to hanging,” he remarked.

He further noted that the new laws authorise the stationing of FBR personnel in industrial units for monitoring purposes and allow tax officers to recover funds directly from bank accounts under Section 140, bypassing the earlier requirement of issuing a prior notice to banks.

The FPCCI leadership also warned that ending captive power would jeopardise billions of dollars in industrial investment.

Magoon highlighted contradictions between the policies of the Federal Board of Revenue (FBR) and the Special Investment Facilitation Council (SIFC), pointing out that while the FBR is accused of harassing investors, the SIFC is tasked with attracting foreign investment.

“With such flawed policies, the prime minister’s target of achieving $100 billion in exports will remain out of reach,” he said, though he reaffirmed the FPCCI’s support for the prime minister’s broader vision of economic recovery.

FPCCI Vice President Muhammad Aman Paracha pointed to a “trust deficit” between the government and the business community, saying: “Due to this lack of trust, tax targets will never be met.” He called for a long-term policy framework spanning 10 to 15 years.

Dr Mirza Ikhtiar Baig, a Pakistan People’s Party MNA, claimed the government is planning legislation to end captive power and assured that his party would oppose any such bill. He also informed the press about an important meeting scheduled for Sunday (today) at the Sindh Chief Minister’s House with all stakeholders to address these concerns.

Senior business leader Bashir Jan Mohammad suggested that the FPCCI should urgently seek a meeting with the prime minister to discuss these pressing issues.