KCCI slams FBR proposals

Bilwani condemns Section 37AA as 'draconian', warns of business relocation, nationwide protests

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KARACHI:

President of the Karachi Chamber of Commerce and Industry (KCCI), Muhammad Jawed Bilwani, has strongly criticised the Federal Board of Revenue (FBR) for what he termed its authoritarian conduct and disregard for the Business Anomalies Committee, comprising presidents of chambers and trade bodies from across Pakistan.

Following extensive consultations with its members, KCCI has launched a citywide protest by displaying banners across Karachi against what it calls "oppressive" provisions in the Finance Bill 2025-26, particularly the proposed Section 37AA in the Sales Tax Act.

"This is just the beginning," Bilwani said in a statement. "The protest will escalate, with press conferences by KCCI and other major chambers. If our demands are ignored, we may have no choice but to call for citywide or even nationwide strikes."

He dismissed the finance minister's claims of a "public-friendly" and "business-friendly" budget as detached from reality. "Industrialists and exporters unanimously agree — there is no relief." Bilwani outlined a grim outlook for the business environment, citing high energy costs, poor infrastructure, gas shortages, water scarcity, and delayed tax refunds. "Our exports survive not because of policy support, but due to the resilience of our business community. Some buyers are even advising us to shift operations to more stable, business-friendly countries."

Criticising Section 37AA as a "draconian law," he said it allows FBR to freeze bank accounts, seize funds, and arrest taxpayers based solely on suspicion, regardless of their past compliance. "Who will continue to do business under such hostile conditions?"

He revealed that many businessmen have asked KCCI to help them explore options for relocating abroad. "We still want to stay and contribute. But we need the government and prime minister to listen and give us confidence."

Bilwani stressed that this frustration is nationwide. "Faisalabad, Lahore, Sialkot — all major export hubs — are raising the same concerns."