The Pakistan Tax Bar Association (PTBA) has strongly opposed the recently promulgated Tax Amendments Ordinance 2025, calling it a direct infringement on the constitutional rights of taxpayers. In a formal letter addressed to President Asif Ali Zardari, the PTBA urged the immediate withdrawal of the ordinance, following a comprehensive review of its contentious provisions.
According to the PTBA, the ordinance introduces amendments that fundamentally alter the legal protections afforded to taxpayers under the Constitution of Pakistan. The association emphasized that these changes compromise the independence of the judiciary, especially in matters where taxpayers seek stay orders against tax demands. Citing the 26th Constitutional Amendment, the PTBA noted that judicial authority has been curtailed, undermining the balance necessary for a fair tax dispute resolution system.
A particularly controversial amendment, the PTBA highlighted, is the requirement for taxpayers to deposit 30% of the disputed tax amount in order to obtain a stay order—even from a high court. This, the PTBA argues, places an undue financial burden on taxpayers and obstructs their access to timely judicial relief. “Such a provision is not only harsh but also discourages genuine appeals by making them financially prohibitive,” the PTBA asserted.
The PTBA further raised alarm over amendments that appear to expand the discretionary powers of taxation officers without adequate checks and balances. The association warned that the ordinance effectively grants tax officials arbitrary authority to enforce tax recovery, bypassing traditional appellate safeguards. “These amendments render the appeals process redundant and expose taxpayers to potential abuse,” the PTBA cautioned.
Describing the ordinance as a step toward administrative overreach, the PTBA expressed deep concern over its broader economic implications. The association warned that empowering tax authorities without ensuring adequate recourse to justice could deter both local and foreign investors. “No investor will feel secure in an environment where executive powers are unchecked and judicial remedies are practically inaccessible,” the PTBA stated.
In its closing remarks, the PTBA reiterated its demand for the immediate revocation of the Tax Amendments Ordinance 2025 and urged that any actions already undertaken under its provisions be suspended. The PTBA stands firm in defending taxpayer rights and ensuring the integrity of the tax justice system in Pakistan.