In a direct appeal to Prime Minister Shehbaz Sharif, the SITE Association of Industry (SAI) has called for the withdrawal of the newly introduced Income Tax Ordinance (Ordinance No. IV of 2025), highlighting its potential threats to the formal business sector and questioning its constitutionality.

According to a press release issued by SITE Association of Industry, Ahmed Azeem Alvi, President of SAI, in a letter to the Prime Minister, recognized the government’s efforts to enhance the business climate but cautioned that the ordinance could negate these advancements. Alvi pointed out that the amendments impose severe and disproportionate measures on formal sector enterprises.

The SAI President explained that the new provisions could weaken the documented economy and discourage compliance, potentially undoing the progress made in expanding the tax base. “These amendments are not only economically burdensome but also legally problematic,” he noted. They reportedly contravene constitutional guarantees and the principle of ‘no taxation without representation’ embedded in Article 77 of the Constitution.

The association stressed that bypassing parliamentary procedures to enact significant changes sets an unsettling precedent and undermines investor confidence. SAI has called for the immediate withdrawal of the contentious amendment, emphasizing the need for economic stability.