Karachi, May 10, 2025 — The SITE Association of Industry (SAI) has issued a strong appeal to Prime Minister Shehbaz Sharif, demanding the urgent withdrawal of the recently promulgated Tax Laws (Amendment) Ordinance 2025, warning that the new legislation poses a significant threat to both economic stability and constitutional norms.
In a formal representation submitted to the Prime Minister on May 9, 2025, SAI President Ahmed Azeem Alvi acknowledged the government’s ongoing efforts to improve the business climate. However, he cautioned that the ordinance, in its current form, undermines those very efforts by penalizing businesses operating within the formal economy.
“The Tax Laws (Amendment) Ordinance 2025 imposes punitive and arbitrary measures that not only discourage documentation and compliance but may also reverse the gains made in expanding the tax base,” Alvi stated. He further emphasized that such abrupt changes to tax laws—enacted without proper parliamentary oversight—violate the constitutional principle of ‘no taxation without representation,’ as guaranteed under Article 77 of the Constitution.
According to SAI, the ordinance bypasses democratic procedures by enacting far-reaching changes through executive fiat, which damages investor confidence and threatens the predictability required for sustainable business operations. The association highlighted that these sudden amendments violate the principles of natural justice, and by doing so, erode trust in the government’s commitment to legal and institutional reform.
The SITE Association warned that continued reliance on ordinances rather than legislation passed through Parliament sets a dangerous precedent and alienates legitimate businesses that are already grappling with inflation, high utility costs, and a fragile economy.
SAI has called upon the federal government to immediately repeal the Tax Laws (Amendment) Ordinance 2025 and instead initiate a consultative process involving key stakeholders from the industrial and business sectors. “Dialogue, not unilateral action, is the need of the hour,” said Alvi, reiterating the industry’s willingness to work with the government on sustainable tax reforms.
The association concluded its appeal by reaffirming its support for a fair and transparent tax system but firmly opposed the continuation of policies that unfairly target compliant businesses through executive ordinances without due legislative scrutiny.