Karachi, May 15, 2025 — The Karachi Chamber of Commerce and Industry (KCCI) has issued a strong warning to the federal government, signaling the possibility of a nationwide protest if the newly introduced tax laws under the Tax Ordinance Amendment 2025 are not immediately withdrawn.
The chamber’s president, Jawed Bilwani, voiced serious concerns over what he termed as unjust, anti-business regulations that risk destabilizing Pakistan’s fragile economic environment.
Addressing the business community and media, President Bilwani called on the government to initiate inclusive and transparent dialogue with stakeholders from trade and industry before implementing any further fiscal measures. “If the ordinance is not rolled back promptly, the business community may be forced to take united action through peaceful, nationwide protests to safeguard the economy and their survival,” he stated.
Referring to widespread disapproval from trade organizations, including the KCCI, Federation of Pakistan Chambers of Commerce and Industry (FPCCI), and various regional chambers, Bilwani criticized the government’s decision to enforce sweeping tax laws without consultation or parliamentary debate. He described the ordinance as a “regressive and impractical” move that contradicts the government’s own commitment to a business-friendly environment.
Bilwani particularly praised MNA Dr. Mirza Ikhtiar Baig for his vocal opposition to the ordinance, noting that his support reflects a growing recognition within political circles of the need for fair and balanced tax reform. The KCCI president stressed that the current amendment risks alienating documented businesses and would further widen the gap between the private sector and the Federal Board of Revenue (FBR).
One of the most damaging aspects of the new laws, Bilwani explained, is the imposition of advance tax demands based on presumed income, without regard for industry-specific cycles or cash flows. This approach, he warned, could cripple small and medium enterprises, many of which already operate under financial strain.
Moreover, the ordinance grants sweeping powers to tax officials, including the ability to freeze bank accounts and initiate recoveries without prior notice — a move the KCCI strongly opposes as a violation of natural justice. “These provisions are bound to create an environment of fear, discourage entrepreneurship, and repel both domestic and foreign investment,” Bilwani said.
Equally troubling, he added, is the criminalization of minor procedural lapses under the new laws. Businesses can now face fines and prosecution over clerical errors or delayed filings, despite the ongoing digitization of the tax system, which still suffers from inefficiencies.
Bilwani further criticized the ordinance for failing to address the broader issue of tax base expansion. He noted that the burden continues to fall on already compliant sectors, while vast informal areas such as retail, real estate, and agriculture remain untouched. “This selective enforcement promotes economic inequality and discourages formalization,” he argued.
Highlighting the need for stable and predictable policy, the KCCI president condemned the government’s use of executive orders to implement critical tax laws, bypassing the legislative process. Such actions, he said, undermine transparency, legal certainty, and investor confidence.
Bilwani concluded by reaffirming that the business community supports tax reform — but only if it is based on fairness, consultation, and a genuine effort to widen the tax net. The KCCI called for immediate suspension of the ordinance and urged the government to engage in meaningful discussions to create laws that promote compliance, investment, and sustainable economic growth.