Karachi, June 12, 2025 – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has voiced serious concerns over the extensive powers granted to tax officials under the Finance Bill 2025.
In a strongly worded statement, FPCCI President Atif Ikram Sheikh cautioned that unchecked discretionary powers could damage the country’s investment climate and disrupt business activity.
Speaking on behalf of the national business, trade, and industrial sectors, Atif Ikram Sheikh urged the government to revisit and amend several anti-business provisions embedded in the budget. He stressed that the country needs a forward-looking fiscal framework focused on economic expansion, investment attraction, and export-led growth, especially now that macroeconomic stability has been achieved.
He warned that vesting excessive powers in taxmen would not only discourage investment but also open doors to harassment, corruption, and abuse. “Globally, best practices dictate that minimal human interaction ensures fairness and reduces chances of malpractice,” said the FPCCI chief. “Pakistan should not reinvent the wheel but learn from international models.”
The FPCCI president also lamented the absence of meaningful consultation with industrialists and exporters before drafting the budget. “If the government genuinely aims to meet its tax collection target, it must engage the business community through an inclusive and transparent dialogue,” he stated.
While Atif Ikram Sheikh appreciated a few key budgetary measures — including the reduction in super tax, rationalized tax slabs for salaried individuals, and simplified tax filing for SMEs — he reiterated that these steps are not enough to offset the negative impact of granting sweeping powers to tax authorities.
FPCCI Senior Vice President Saquib Fayyaz Magoon also weighed in, demanding the reinstatement of the fixed tax regime (FTR) for exporters. He stressed that clarity and consistency in tax policy are essential to attract both domestic and foreign investment.
Magoon criticized the imposition of 18% sales tax on raw materials, calling it a blow to local manufacturers and exporters. He argued that instead of empowering tax officials with excessive powers, the government should have broadened the Export Facilitation Scheme (EFS) as proposed by FPCCI.
He also expressed disappointment that FPCCI’s proposals for special incentive packages for sectors like IT, mines and minerals, and fishing were ignored—despite their immense potential for growth and employment. “We must empower industries, not taxmen,” he concluded.