Karachi, July 3, 2025 — In an explosive press conference that sent shockwaves through Pakistan’s business circles, the Karachi Chamber of Commerce and Industry (KCCI) launched a scathing attack on the government’s newly enacted Sections 37A and 37B of the Sales Tax Act, 1990, calling them “draconian” and a direct assault on law-abiding taxpayers.
Flanked by top business leaders and industrialists, KCCI President Jawed Bilwani declared that only 2% of registered taxpayers may be involved in fraudulent practices, yet the government’s aggressive tax crackdown is unjustly targeting the 98% of honest taxpayers who are already in the documented economy. “Why are compliant taxpayers being treated like criminals?” Bilwani asked, as thunderous applause filled the press hall.
Bilwani revealed that 60% of Pakistan’s economy remains undocumented, while the remaining 40% — already registered taxpayers — face unrelenting harassment under the controversial provisions of the Sales Tax Act. The president warned that the newly granted arrest powers under Sections 37A and 37B to FBR officials are nothing short of legal overkill, posing a serious threat to business activity, investor confidence, and Pakistan’s already fragile economic reputation.
KCCI, alongside the Businessmen Group (BMG) and other major trade associations, has kicked off a full-fledged protest campaign. After flooding Karachi with banners and placards, they took their outrage public today with a fiery press briefing attended by KCCI’s managing committee, presidents of industrial town associations, former KCCI leaders, and scores of prominent businessmen.
Critics slammed the Federal Board of Revenue (FBR) for failing to differentiate between fraudsters and genuine taxpayers. Bilwani highlighted that in most legal battles, the courts have ruled in favor of taxpayers, not the tax collectors — proving how flawed the enforcement has become. “And yet, the very officials who lose in court are now armed with unchecked powers,” he exclaimed.
The KCCI president further denounced the government’s blatant disregard for the consultative process. He detailed how the Business Anomaly Committee — the traditional platform for budgetary input — was completely sidelined this year. “For the first time in history, no proper consultation was held. Committee members had no choice but to resign and walk out in protest. The Finance Bill was bulldozed without consensus,” Bilwani lamented.
Bilwani issued an impassioned plea to the Prime Minister, demanding immediate repeal of Sections 37A and 37B and the formation of a high-level committee including chamber presidents and FBR officials. “Of the 30 anomalies KCCI identified, at least 5 to 6 are so severe that they could paralyze the entire taxpayer compliance system,” he warned.
KCCI’s message was loud and clear: the business community will not stay silent while taxpayers are crushed under misguided laws. The press conference also featured statements from Lahore Chamber President Mian Abuzar Shad and Faisalabad Chamber President Rehan Naseem Bahrara, who joined via Zoom and echoed KCCI’s fierce opposition.
As KCCI continues to receive a flood of complaints from taxpayers nationwide, one question echoes across boardrooms: “How can we grow under a regime that treats taxpayers as suspects?”