Karachi, May 4, 2025 – The Karachi Chamber of Commerce and Industry (KCCI) has strongly denounced the recently promulgated Tax Laws (Amendment) Ordinance, 2025, calling it undemocratic and detrimental to business confidence.
KCCI has demanded the federal government immediately revoke the ordinance and hold a transparent parliamentary debate involving all relevant stakeholders.
In a strongly worded statement on Sunday, KCCI President Muhammad Javed Bilwani criticized the ordinance for granting sweeping powers to the Federal Board of Revenue (FBR), particularly in matters of tax recovery. He said that the ordinance bypasses both Parliament and the Judiciary, undermining the constitutional checks and balances essential to democratic governance.
The controversial ordinance, issued just a day earlier by the President of Pakistan, amends Sections 138 and 140 of the Income Tax Ordinance, 2001, as well as key clauses in the Federal Excise Act, 2005. These changes authorize the FBR to take immediate recovery actions—such as freezing bank accounts, attaching properties, and sealing business premises—after a final verdict from the High Court or Supreme Court, without issuing any further notice.
Bilwani termed this an unacceptable overreach, stating, “Allowing tax authorities to forcibly recover dues immediately after a court verdict, without even a basic opportunity for voluntary compliance or appeal, amounts to harassment and a violation of due process.”
Further provisions in the ordinance empower FBR officials to be stationed within factories and business sites to monitor production, inventory, and the flow of goods. The KCCI views this move as invasive and alarming for businesses already grappling with regulatory pressures.
“The deployment of tax officers in business premises is not just intrusive—it’s pure harassment,” said the KCCI president. “This ordinance disrespects the Constitution, undermines the judiciary, and sends a damaging signal to the investment community.”
KCCI emphasized that the amendments to the Federal Excise Act appear to be driven by ill intent rather than reform. The Chamber reiterated its call for the government to immediately withdraw the ordinance and engage with stakeholders through proper legislative processes.
KCCI stands firm in its resolve to protect business interests and uphold democratic accountability in all fiscal policymaking.
READ MORE: FBR begins swift tax recovery from bank accounts under new law