Tax laws termed ‘death warrants for industries'
They denounced the ordinance for granting disproportionate authority to the Federal Board of Revenue (FBR), especially regarding tax recovery.
Signed into effect by the President of Pakistan Asif Ali Zardari, the ordinance amends Sections 138 and 140 of the Income Tax Ordinance, 2001, along with key portions of the Federal Excise Act, 2005. The changes permit the FBR to execute immediate enforcement measures—such as freezing accounts, confiscating property, and sealing business premises—once a final ruling is issued by the High Court or Supreme Court, with no requirement for additional notice.
The ordinance also allows FBR personnel to be physically deployed within factories and commercial sites to oversee production, stock levels, and the movement of goods.
President FBATI Sheikh Muhammad Tehseen has condemned this as a serious infringement on operational freedom and a new layer of bureaucratic intrusion.
'Having tax officers embedded in our workplaces is not only invasive but amounts to institutional harassment,' said the FBATI president. 'This legislation undermines constitutional rights, weakens the role of the judiciary, and creates a hostile environment for current and potential investors.' He criticized the move for bypassing legislative and judicial oversight, which he said is a clear violation of the country's constitutional framework.
Calling the ordinance overstep of authority, he stated, 'This kind of enforcement leaves no room for voluntary compliance or appeals. It's coercive and strips businesses of basic legal protections.'
President SITE Superhighway Association of Industries (SSHAI) Pervaiz Masood said that the government allowed tax authorities to recover taxes from industries at gunpoint, which is an unlawful and unconstitutional act. The ordinance will seriously hit the business confidence within the country, he said. Not only it will discourage investments at a local level, but industries may move to other countries to avoid harassment culture.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
20 minutes ago
- Express Tribune
Plugging tax leaks
Listen to article That more than Rs2.25 trillion have been lost to tax evasion through 'fake' and 'flying' invoices in just two years is a staggering admission — and one that lays bare the scale of institutional failure plaguing Pakistan's revenue machinery. The figure, disclosed by the Federal Board of Revenue, represents nearly a third of the total taxes collected on the customs side, showing just how deeply entrenched the problem has become. Such large-scale evasion at a time when the country is navigating a fragile economic recovery is not only unsustainable but damaging to the government's credibility. Successive administrations have repeatedly promised to broaden the tax base and improve documentation, yet loopholes that enable outright fraud continue to be exploited with impunity. The use of fake invoices to claim undue input tax credits or reduce tax liability has become a routine practice, facilitated in many cases by internal collusion. FBR has claimed that it is the only federal institution to have taken action against its own officers involved in such malpractices. However, internal accountability alone will not suffice. While punitive measures may deter some, the persistence of such fraudulent practices points to a structural rot that requires far more than selective disciplinary action. Pakistan's low tax-to-GDP ratio is a well-documented constraint on fiscal policymaking. It limits the state's capacity to provide essential services and meet its debt obligations without resorting to regressive indirect taxation or repeated external borrowing. To plug these revenue leaks, the government must move towards comprehensive digitisation of invoicing and supply chains along with stronger audit systems — all the while depoliticising the FBR's functioning. No serious economic recovery can be achieved while the state remains incapable or unwilling to curb fraud within its own revenue apparatus. This haemorrhaging must end if the country wants sustainable recovery.
Express Tribune
20 hours ago
- Express Tribune
PM approves creation of digital ecosystem at FBR
Prime Minister Shehbaz Sharif on Saturday granted approval for the formation of a modern and globally standard digital ecosystem in the Federal Board of Revenue (FBR), besides directed hiring of internationally renowned experts. During a meeting to review progress on the ongoing reforms in the FBR, the prime minister observed that the economy was moving in a positive direction due to the recent reforms in FBR. Ministers Muhammad Aurangzeb, Ahsad Khan Cheema, Minister of State Bilal Azhar Kayani, FBR Chairman, Chief Coordinator Musharraf Zaidi, economic experts and other senior officials attended the meeting, PM Office Media Wing said in a press release. The meeting was briefed on the progress regarding the formation of a modern digital ecosystem aimed at centralizing FBR's data and enabling real-time monitoring of the entire value chain. The prime minister, while chairing the meeting, emphasized that not only digitization, but a comprehensive digital ecosystem should be established to strengthen the new system and directed that all the relevant data, from raw material production and import, to manufacturing of goods and the final consumers' purchase, should be integrated into a single system. The prime minister said the system should be made so effective that the entire value chain could be monitored digitally in real time. He further opined that the centralized data collected under this system should be utilized for the economic strategic decision-making. The prime minister stressed that the goal of reducing taxes for the common man could only be achieved by increasing the tax base and ending the informal economy. Incentive scheme Prime Minister Shehbaz Sharif has decided to continue the incentive scheme for the remittances of overseas Pakistanis to Pakistan. He directed the Ministry of Finance to immediately release funds for the Workers' Remittances Incentive Scheme on priority basis. He said, "Overseas Pakistanis are our strength and a valuable asset of Pakistan." "The hard-earned remittances of overseas Pakistanis play an important role in the development of Pakistan, which the entire nation, including me, values," he added. In the fiscal year 2025, he said overseas Pakistanis played a key role in achieving the target of current account surplus for the first time in 14 years by sending a record high of $38.3 billion in remittances. These remittances not only helped pay the rising import bill but also helped increase foreign exchange reserves, he noted. He said "Overseas workers and businessmen play a crucial role in the country's development and progress by sending remittances to their homeland."
Business Recorder
a day ago
- Business Recorder
Nishan-e-Imtiaz awarded to USCENTCOM Commander
ISLAMABAD: The Government of Pakistan has awarded the prestigious Nishan-e-Imtiaz (Military) to General Michael E Kurilla, Commander of the United States Central Command (USCENTCOM), in recognition of his outstanding contributions to strengthening Pakistan-US defence cooperation and regional security. The honour was formally conferred by President Asif Ali Zardari during an investiture ceremony held at Aiwan-e-Sadr. The award acknowledges General Kurilla's pivotal role in advancing enduring military collaboration, enhancing counterterrorism efforts, and promoting strategic dialogue between the armed forces of the two countries. General Kurilla's leadership has been instrumental in deepening mutual trust and fostering strong defence relations between Pakistan and USCENTCOM. His consistent engagement underscores the United States' recognition of Pakistan's critical role in ensuring peace and stability across the region. 'This honour reflects Pakistan's deep appreciation for General Kurilla's unwavering support and his commitment to building a robust security partnership,' said a statement issued by the Inter-Services Public Relations (ISPR). During his visit, General Kurilla held detailed discussions with senior Pakistani civil and military leadership, including President Asif Ali Zardari and Chief of Army Staff Field Marshal Syed Asim Munir, NI(M). Talks focused on regional security dynamics, military-to-military cooperation, and joint responses to evolving transnational threats. On his arrival at the Presidency, General Kurilla was presented with a Tri-Services Guard of Honour, marking the high regard with which Pakistan views his contributions. Copyright Business Recorder, 2025
