They bitterly criticized the ordinance for granting sweeping powers to the Federal Board of Revenue (FBR), including the authority to freeze bank accounts, seal business premises, and confiscate properties. They described these measures as a blatant violation of due process and constitutional protections, particularly Section 137(2) of the Income Tax Ordinance, which grants taxpayers a 30-day compliance period even after an adverse appellate decision.
Such unchecked authority, APBUMA leaders warned, creates fear, disrupts commerce, and undermines business confidence. The APBUMA Chairman Imran Mahmood Malik further condemned the move to post tax officers inside business premises, calling it an invasive and unprecedented form of enforcement that infringes on constitutional rights to privacy and business freedom. Rather than encouraging compliance, such steps, he argued, amount to harassment and surveillance.
AOBUMA body also questioned the timing of the ordinance, which was passed through a presidential order just days before Parliament was scheduled to convene, raising serious doubts about the government’s intent and its respect for democratic norms. Highlighting the economic fallout, body noted that Pakistan’s industrial output has already contracted by 3.91% in FY2024, and foreign direct investment has fallen by 22.5% in the first half of FY2025. In this context, coercive policies risk pushing more businesses into the informal sector or forcing them to shut down altogether. He pointed out that despite increasing tax raids between 2018 and 2022, the FBR’s own data shows little improvement in tax collection from the informal economy, proving that coercion does not lead to reform.
They expressed their serious reservations over the Income Tax Amendment Ordinance 2025 and demanded the government to review it immediately. Chairman Imran Mahmood Sheikh said that the unfettered powers given to tax officers under this ordinance, such as freezing and attachments of bank accounts and direct withdrawal of funds from their account , are creating severe distrust among the business community.
This move will not only affect the business environment but will also slow down industrial activities. Senior Vice Chairman Syed Ahsan Shah said that the unbalanced powers given in this ordinance will not increase tax revenue but will increase tax evasion, corruption and legal complications. These policies are a major obstacle to the sustainable development of industries, especially SMEs.
Patron-in-Chief Syed Muhammad Asim Shah stressed that consultation with stakeholders, especially representative bodies of export industries, should be made mandatory for such economic legislation. He said that in the current economic conditions, legislation should be transparent and consultative to restore the confidence of the business community and ensure sustainable development. APBUMA has strongly demanded from the government to immediately withdraw this ordinance and introduce a balanced, consultative and business-friendly tax system so as to promote industrial development and enable continuity in exports.
