- Advertisement -
MULTAN, Jul 08 (APP):Leading representatives from trade bodies, chambers of commerce, and industrial associations across Pakistan demanded the government unanimously to abolish sections 37-A, 37-B, and 21(S) of the Finance Bill for FY 2025-26.
In a joint press conference held at the Multan Chamber of Commerce and Industry (MCCI) here on Tuesday evening, chambers across South Punjab participated as well as representatives from Karachi, Lahore, Faisalabad, Rawalpindi, Gujrat, and Bahawalpur, who joined via video link. Key organizations such as the Pakistan Cotton Ginners Association, All Pakistan Oil Mills Association, Chamber of Small Traders, and Crop Protection Association were also in attendance.
Speaking at the conference, President Multan Chamber of Commerce and Industry, Mian Bakhtawar Tanveer Sheikh, condemned the new tax laws, particularly sections 37-A and 37-B, which he said give FBR officials powers to arrest, detain, and investigate without prior judicial approval. He warned that such powers violate constitutional rights and would fuel fear, corruption, and mistrust in the business community. He added that these provisions would severely damage investment and exports, especially threatening the survival of small and medium-sized enterprises.
Expressing serious concerns over Section 21(S), Sheikh said that disallowing 50% of expenses made through cash transactions exceeding Rs. 200,000 is impractical for Pakistan’s largely cash-driven agricultural economy. He demanded that the limit be raised to at least Rs. 1 million, and that businesses operating in remote areas be exempted from this provision.
On digital invoicing and related systems, Sheikh stated that while the intention may be positive, the lack of infrastructure, training, certified integrators, and data security has turned implementation into a nightmare for traders. He urged the government to defer the implementation for at least 12 months, and initially exempt small traders.
Javed Balwani, President of Karachi Chamber of Commerce, echoed the sentiments via video link, stating that the entire business community stands united against the unjust laws. He noted that FBR officers now wield more authority than police inspectors (SHOs), leading to harassment and false cases. Balwani warned that if the laws are not withdrawn, traders will take to protests, strike banners, black flags, and complete shutdowns.
Similar rejection of the Finance Act’s provisions came from Rehan Naseem (Faisalabad Chamber), Mian Abu Zar (Lahore Chamber), Ikram-ul-Haq (Sialkot), Zafar Sharif (Bahawalpur), Sardar Zulfiqar Ali Khan (DG Khan), Umair Saeed (Small Traders), Muhammad Hammad (Crop Protection Association), and others, who termed the new tax regime as impractical and detrimental.
Former FPCCI President Mian Tanveer Sheikh pointed out that these laws contradict the constitution and violate fundamental human rights. He emphasized that courts have already nullified Section 37-A in 2012 and 2024, and its reintroduction could be considered contempt of court.
Former Multan Chamber presidents Mian Rashid Iqbal and Mian Fareed A. Sheikh said the new powers granted to FBR officials have increased opportunities for extortion and misuse, making it almost impossible for honest businesses to operate.
Other business leaders including Anwar Saleem, Majeedullah Khan, Khawaja Sohail Tufail, Sheikh Amjad, Azhar Javed, Talat Javed, and Naveed Iqbal Chughtai demanded the immediate withdrawal of the new tax laws and digital systems, urging the government to formulate policies through consultation, aimed at economic growth and ease of doing business.