RECORDER REPORT

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has voiced serious concerns over the newly introduced taxation measures under the FBR framework, warning that the imbalanced reforms could erode business confidence and pose a threat to the country’s economic growth.

Aun Ali Syed, Vice President of FPCCI Khyber Pakhtunkhwa (KPK) and Chairman Prosper Pakistan, has expressed grave concerns regarding the recently introduced taxation provisions under the FBR framework, calling them highly detrimental to the business environment and a violation of basic legal and economic principles.

“These amendments grant disproportionate and unchecked powers to tax authorities, potentially undermining the trust, stability, and growth of business ecosystem”, he added.

He cautioned that such excessive and coercive measures will not contribute to enhanced revenue collection. On the contrary, they are likely to create a hostile and fear-driven environment, encouraging evasion rather than compliance.

He emphasised that economic growth and exports are not the sole responsibility of the FBR or a few institutions. “Nation-building is a shared effort,” he said, stressing the need for trust, cooperation, and transparency between policymakers, administrators, and the business community.

He warned that excessive powers granted to tax authorities will not boost revenue but instead hinder growth, creating a climate of mistrust between the FBR and the business community. He stressed that economic progress is a shared responsibility requiring teamwork, trust, and mutual confidence among all stakeholders.

Calling for urgent reconsideration and stakeholder dialogue, he said. “If we truly envision a ‘Prosper Pakistan,’ we must replace fear with facilitation and enforcement with engagement. Only then can we rise to the dream of a nation soaring towards prosperity, inclusivity, and sustainable growth,” said.

He has also outlined a series of clauses in the Finance Bill that, according to him, grant unchecked powers to tax authorities, threaten property rights, and weaken the rule of law, all of which could severely undermine business confidence and investment climate in the country.

He pointed out that Section 11E permits tax assessment and recovery based merely on suspicion, without requiring proper investigation or concrete evidence. “This level of discretion opens the door to misuse, arbitrary action, and harassment of legitimate business operators.”

He urged the government to reconsider these provisions, warning that such sweeping powers, without proper checks and balances, could destabilise the business environment, stifle growth, and trigger legal uncertainty.