Karachi, August 8, 2025 – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has warmly welcomed the government’s decision to roll back several controversial tax provisions introduced in the federal budget for the fiscal year 2025–26.
In a statement issued on Friday, FPCCI President Atif Ikram Sheikh expressed both relief and appreciation, noting that these budgetary reversals will significantly ease the pressure on the country’s business, industrial, and trade sectors.
Mr. Sheikh emphasized that the original measures had raised deep concerns within the business community, creating uncertainty and the potential for harassment through unchecked enforcement powers. Recognizing the urgency of the matter, he, along with former caretaker Federal Minister for Commerce Gohar Ejaz and Patron-in-Chief UBG S.M. Tanveer, engaged in high-level consultations with government authorities, supported by the leadership of multiple chambers and associations nationwide.
According to the FPCCI president, delegations led by the chamber met with Prime Minister Shehbaz Sharif, Chief of Army Staff General Syed Asim Munir, Finance Minister Muhammad Aurangzeb, and other senior policymakers. Discussions centered on contentious clauses of the Finance Bill 2025, including Section 37A, Section 21(s), Section 8B, Section 40B of the Sales Tax Act, and the rapid implementation of e-invoicing.
Significant outcomes include limiting arrest powers under Section 37A strictly to serious sales tax fraud cases, with mandatory approval from a committee including trade body nominees. Similarly, changes to Section 21(s) now recognize cash deposits into bank accounts as banking transactions, reducing operational hurdles for many businesses. Section 8B amendments ensure that any changes to input tax restrictions will involve formal consultations with sector representatives.