Rawalpindi, May 5, 2025 – The Rawalpindi Chamber of Commerce and Industry (RCCI) has voiced strong opposition to the sweeping powers granted to the Federal Board of Revenue (FBR) through a newly promulgated tax ordinance, warning that such unchecked authority could gravely undermine business confidence and economic activity.
In a detailed statement issued Monday, RCCI President Usman Shaukat expressed grave concerns about the provisions that empower FBR officials to take direct action against businesses without prior due process. “We categorically reject the arbitrary and coercive measures introduced through this Ordinance,” said Shaukat. “Stationing FBR officers at marketplaces and business premises under the pretext of documentation is a clear infringement on commercial freedom and will open the floodgates to harassment.”
One of the most contentious aspects, according to the RCCI, is the clause enabling the FBR to withdraw funds directly from a taxpayer’s bank account following an unfavorable ruling by a High Court—even before a final verdict is issued by the Supreme Court. This move bypasses the safeguards previously embedded in Sections 137(2) and 138(1) of the Income Tax Ordinance, 2001, which required prior notification before initiating recovery.
“The RCCI is particularly concerned that these provisions effectively diminish the right to appeal,” added Shaukat. “Allowing the FBR to recover dues at such an early stage, before the final court of law has ruled, is premature and unjust.”
The RCCI also highlighted the legal ambiguities within the new tax framework. It remains unclear whether the FBR would promptly refund recovered funds if a court ultimately rules in the taxpayer’s favor. The lack of clarity further fuels distrust within the business community.
In its statement, the RCCI condemned the physical deployment of FBR officials at business establishments as excessive, invasive, and counterproductive. The Chamber warned that such measures would discourage investment, stifle entrepreneurship, and deepen mistrust between businesses and tax authorities.
Calling the Ordinance a serious overreach, the RCCI demanded its immediate withdrawal. It also urged the government to engage in transparent consultations with stakeholders, emphasizing that meaningful reforms should support, not stifle, Pakistan’s fragile business ecosystem.