The Korangi Association of Trade and Industry (KATI) has categorically rejected the newly introduced Tax Ordinance 2025, labeling it as anti-business, unconstitutional, and detrimental to investment. KATI President Junaid Naqi strongly condemned the ordinance, warning that the sweeping powers granted to tax authorities amount to “economic terrorism.”

In a statement, Naqi said the ordinance empowers the Federal Board of Revenue (FBR) to take extreme measures such as freezing bank accounts, seizing property, and sealing factories immediately after a court ruling—without prior notice or warning to the businesses involved.

“This ordinance is a blatant violation of the constitution, the judiciary, and the basic freedom of doing business in Pakistan,” he asserted. “Instead of fostering trust and confidence in the business community, the government is creating an environment of fear and uncertainty.”

The KATI chief highlighted that the amendments to the Income Tax Ordinance 2001 and the Federal Excise Act 2005 permit FBR officers to be stationed within factories and business premises, where they can directly monitor production, stock, and the movement of goods. He described this as an extreme intrusion into private enterprise and likened it to “spying in the name of economic oversight.”

Naqi warned that such draconian measures would not only harm the country’s struggling economy but also discourage future domestic and foreign investment. “This is not legislation for the benefit of a person or a department—this seems like a well-orchestrated move against the entire business community,” he added.

He called on the government to immediately revoke the ordinance and engage with all stakeholders before introducing any such drastic reforms.