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The business community across Pakistan has thrown its weight behind a nationwide shutdown strike set for July 19, protesting the "massive" new tax measures introduced in the Finance Act 2025-26, Dawn reported.
In a joint press conference held at the Sarhad Chamber of Commerce and Industry (SCCI), President Fazal Moqeem Khan, Senior Vice President Abdul Jalil Jan, and members of the SCCI executive committee voiced strong opposition to the Finance Act, which took effect on July 1. They warned the protest could escalate into a prolonged agitation if the government failed to address their concerns, Dawn reported. "We have been left with no option but to take even more drastic steps, including suspending the filing of sales tax and income tax returns," Fazal Moqeem Khan said, according to Dawn. He noted that sentiments across the SCCI echoed a growing frustration and loss of faith in the economic environment under current government policies. He expressed solidarity with the Karachi Chamber of Commerce and Industry, which had earlier flagged 30 "harsh tax and customs measures" as threatening to business survival. "The SCCI stands shoulder to shoulder with all business organisations demanding the immediate reversal of these unjust laws," he added, as reported by Dawn. Fazal specifically highlighted Sections 37A and 37B of the Income Tax Ordinance, calling them "draconian and unprecedented." He also criticised a new amendment under Section 21(s) that disallows any cash transaction of Rs200,000 or more for tax deduction purposes. "If a customer pays a supplier in cash, even by depositing directly into the supplier''s account, the supplier could be penalised by losing 50 per cent of the expense in tax calculations," he said. The SCCI president strongly objected to mandatory digital invoicing and e-bility systems. "Why are taxpayers being forced to perform the FBR''s duties at their own expense? This will only widen the gap between the business community and tax authorities," he said, according to Dawn. He further accused the Federal Board of Revenue of ignoring the traditional consultative process followed before the passage of the Finance Bill. "These discussions are held with the participation of Member Inland Revenue, Member Customs, and eventually the Finance Minister and Chairman FBR," Fazal said. "This year, the process was unilaterally bypassed for the first time, leaving no room for dialogue or consensus." Fazal said multiple committee members had resigned in protest after the Finance Bill was rushed through Parliament. "Despite vocal objections from the business community and the parliamentary standing committees, the Finance Bill was rushed through the house," he said, urging the prime minister to withdraw several controversial sections, including 37A, 37B, 21(s), 40(c), and 8B of the Sales Tax Act. Meanwhile, the Swat Chamber of Commerce and Industry (SCCI) announced plans to launch an anti-tax movement uniting political parties, trade federations, business associations, lawyers, journalists, and citizens on a single platform, as reported by Dawn. During a meeting chaired by SCCI President Noor Mohammad Khan, members condemned the imposition of a 10% sales tax and called for the reinstatement of the special status of Malakand Division. "If the government can''t provide employment to youth, it must not impose taxes," participants said, citing widespread unemployment and past disasters, according to Dawn. They also criticised recent anti-encroachment operations, alleging misuse of power by local authorities. Participants demanded relief for affected individuals and formed a committee to evaluate the sale of land previously acquired for the chamber and to purchase more suitable property. (ANI)
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