Karachi, June 25, 2025 – The Karachi Chamber of Commerce and Industry (KCCI) has planned large-scale protest against the controversial arrest powers granted to Federal Board of Revenue (FBR) officials under the Finance Bill, 2025.
The business community has voiced serious concerns over the insertion of Section 37AA in the Sales Tax Act, 1990, which empowers FBR officials to arrest individuals allegedly involved in tax fraud. In response, KCCI initiated a symbolic but strong silent protest on Wednesday by displaying banners across Karachi, condemning what it describes as a “draconian law.”
According to a senior member of KCCI, the current banner campaign is only the beginning of a broader protest movement. He warned that the next phases could include mass agitations such as shutter-down strikes and suspension of production activities in industrial units. “We are left with no choice but to protest if our demands are ignored,” he stated.
KCCI, being the largest and most influential chamber in the country, is taking a leading role in mobilizing the business community. The chamber has been particularly vocal in rejecting the arrest powers granted to tax authorities, arguing that such provisions create an atmosphere of fear and distrust among honest taxpayers.
In a major development, KCCI has resigned from the federal budget anomaly committee in protest and is currently in talks with other chambers across Pakistan to coordinate a joint response. A nationwide protest campaign is being considered, with initial consultations already underway.
Sources within KCCI criticized the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) for its silence on the issue. According to them, the apex trade body has shown reluctance to stand up against the new law, leaving regional chambers like KCCI to bear the burden of protest alone.
KCCI has reiterated that unless the government withdraws the arrest clause, the chamber will escalate its protest campaign in the coming days. The message is clear: the business community will not accept legislation that it believes undermines its constitutional rights and disrupts economic activity.