Muhammad Saleem

The business community of Faisalabad has rejected the Tax Amendment Ordinance 2025, stating that it will adversely impact business activities.

Talking to WealthPK, President Faisalabad Chamber of Commerce and Industry (FCCI), Rehan Naseem said open dialogue is the need of the hour to improve tax laws. “The government should avoid introducing laws that disrupt economic growth and erode trust. We hope the government will listen to us, as the business community wants partnership, not punishment,” he added.

He said the Faisalabad Chamber, along with all major business and trade associations, has completely rejected the ordinance. He added that the government had issued the ordinance without consulting stakeholders and, instead of resolving existing challenges, it would further burden businesses already struggling with high inflation and low demand.

“We strongly oppose this ordinance because it was introduced without any input from the business community. The government didn’t even bother to consult the chambers of commerce across the country. This is not a good sign, as important decisions are being made without taking the real stakeholders into confidence,” he said.

He said on the one hand, the government claims that it is striving to promote digitalization to reduce human interaction, but on the other hand, this ordinance allows officials to be deputed on the business premises, contradicting its claim, he added. Rehan further said that under the new ordinance, the government would be able to deduct payments directly from the business bank accounts, even if cases are still pending with courts or any other platform. 

He said such approaches will shatter the confidence of the business community, and the government must refrain from using such tactics. “At a time when businesses are already facing immense pressure, such laws will only worsen the situation. We believe in dialogue, not confrontation, but to succeed, there must be mutual respect,” he added.

The FPCCI president said the business community of Faisalabad demands that certain sections of this ordinance be withdrawn immediately.  The government should form a joint consultation committee, including representatives from the chambers across the country. All future changes to the tax laws must be discussed in advance. Surprise ordinances only damage trust, he added.

City President Anjuman-e-Tajran Faisalabad Khawaja Shahid Razaq Sikka said that after the issuance of the ordinance, the traders are deeply concerned. He said the prices of commodities and raw materials are already high, and the profit margins of traders are shrinking.

Instead of offering relief, he said the government was introducing more rules and inspections that only serve to pressure and frustrate the business community. He said small traders can’t afford lengthy legal battles or complicated audits. They just want to run their shops in peace. This ordinance creates fear and uncertainty, even among the honest taxpayers, he added.

“In an atmosphere filled with confusion and fear, how can anyone do business peacefully?” he asked. Many small traders are unable to understand the legal language. What they have gathered so far is that this law may allow the tax officers to harass even those who pay taxes regularly.

Sikka emphasized that the system should encourage compliance and support economic stability, not frighten people who are already struggling to make ends meet. “We are in contact with the Faisalabad Chamber on this issue and have completely rejected this ordinance, as it will serve neither the nation nor the business community,” he added.

Credit: INP-WealthPk