The Karachi Chamber of Commerce and Industry (KCCI) has termed the sweeping powers granted to the Federal Board of Revenue (FBR) in the new tax laws as draconian. Business leaders, including Zubair Motiwala, Anjum Nisar, Mian Abrar, Javed Bilwani, Zia-ul-Arfeen, and Faisal Khalil, demanded the repeal of these laws during a press conference. KCCI President Bilwani stated that these laws damage Pakistan’s business reputation and will deter domestic and foreign investment.

Bilwani criticized the administration’s inadequate interaction with the Business Anomalies Committee and announced the launch of a widespread protest by the KCCI.

The corporate sector objects to Section 37A. Mr. Bilwani argued that the power of arrest without oversight will lead to intimidation, and authorities may use these powers for personal gain. He warned that law-abiding taxpayers could be subjected to extortion, and even a single action under Section 37A could cause widespread concern within the business community.

He predicts a decline in business activity, disruption of development projects, and discouragement of investors. He reiterated the business community’s concerns about conducting business with dignity under these conditions. Mr. Bilwani emphasized that this law targets law-abiding taxpayers instead of tax evaders, pointing out that 60% of Pakistan’s financial system is informal, while 98% of the formal economy comprises honest taxpayers. He questioned the logic of punishing everyone for the wrongdoing of a few. Citing court decisions in favor of taxpayers in disputes with the FBR, he questioned the available recourse for ethical businesses seeking justice.

Mr. Bilwani urged the government to focus on non-filers instead of penalizing the formal financial sector. He expressed disappointment at the government’s negligence regarding the procedures established by the Business Anomalies Committee, particularly the lack of pre-budget dialogue. He described the resignations and walkouts of committee members as a sign of protest and criticized the hasty approval of the budget, ignoring the corporate sector’s input. He noted that flaws identified by the National Assembly and Senate committees were also rejected. Despite consensus, the administration dismissed the committee’s reviews.

The KCCI has identified 30 flaws, 5-6 of which are considered particularly serious, potentially hindering tax filing submissions. Mr. Bilwani demanded immediate corrective action on these critical issues and appealed to the Prime Minister to form a special panel comprising presidents of all chambers and FBR representatives to review all flaws in an emergency meeting.

In his closing remarks, he emphasized the growing dissatisfaction and frustration within the business community, stating that the administration is at a critical juncture and must take decisive action to prevent further deterioration of the situation.