Govt to revisit tax amendment ordinance following FPCCI concerns

KARACHI: Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan has assured the business community that the government will review the Tax Laws (Amendment) Ordinance, 2025.

This assurance was conveyed to a delegation from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), according to a statement issued by the apex trade body on Friday.

Atif Ikram Sheikh, president of the FPCCI, said that Khan had pledged to consider amendments to the ordinance in light of the federation’s recommendations, in order to address the “profound grievances” of Pakistan’s business, industrial and trade sectors.

He credited this development to the FPCCI’s continued policy advocacy on what he described as a matter of national importance. Sheikh led the business delegation in talks with Khan, during which they raised issues including the tax amendment ordinance, alleged high-handedness by the Federal Board of Revenue (FBR), barriers to doing business and concerns related to dangerous petroleum liquids (DPL).

The FPCCI president said the entire business community -- including chambers, trade bodies and associations -- has serious reservations about the new ordinance. He warned that, rather than improving tax collection or streamlining the system through digitalisation, the ordinance could lead to increased harassment, corruption and administrative inefficiencies.

“It is a globally established fact that the more a tax collector is allowed to interact directly with the taxpayer, the greater the risk to principles of fairness, transparency and impartiality,” he said. “We do not need to reinvent the wheel on this matter.”

According to the FPCCI statement, Khan reaffirmed his commitment to resolving the business community’s issues. He also said that Prime Minister Shehbaz Sharif had issued instructions to establish problem-solving committees and to ensure the inclusion of business stakeholders in policy consultations.

During the meeting, FPCCI Senior Vice President Saquib Fayyaz Magoon noted that the SAPM had agreed to extend the six-month exemption on DPL -- originally granted until May 25 -- for an additional six months at the FPCCI’s request. “We must clearly define DPL and resolve the issues related to transportation, availability, storage, and regulation of key chemical raw materials used in industry and manufacturing,” Magoon said.