Tax Amendments Threaten Investments, Undermine Business Confidence, Chairman PVMA Sheikh Umer Rehan

Karachi: Sheikh Umer Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA),
has strongly condemned the recent amendments made to the Income Tax Law 2025 via presidential
ordinance, calling it a direct threat to investor confidence, constitutional rights, and democratic values in
Pakistan. In a strongly worded statement, he urged President Asif Ali Zardari, Prime Minister Shehbaz
Sharif, and the Ministry of Law and Justice to immediately intervene and withdraw the ordinance,
emphasizing the urgent need for stakeholder consultation before any such legislation.
Rehan criticized the Federal Board of Revenue (FBR) for being granted sweeping powers, including the
authority to freeze bank accounts without prior notice or court order. "This is a blatant violation of the
legal and constitutional rights of the business community," he stated. “Such unchecked authority paves
the way for extrajudicial actions, which are unacceptable in any democratic and civilized society.”
He specifically pointed to Sections 138(3A) and 140(6A) of the amended Income Tax Ordinance, arguing
that they erode the sanctity of the judiciary and deny taxpayers their right to defend themselves. "These
amendments contradict the principles of trust, transparency, and business continuity, and must be
rejected," he added.
Rehan also highlighted the contradiction in FBR’s approach: on one hand, the board promotes faceless
systems and digitalization, while on the other, it proposes amendments allowing officers to be deployed
in industries for close physical monitoring. "This inconsistency will deeply damage investor trust," he
warned.
While acknowledging that the amendments may temporarily boost tax collection, Rehan cautioned that
the long-term effects will be disastrous for economic growth, employment, and industrial development.
“Such draconian measures are fostering an environment of fear and uncertainty, which will deter both
domestic and foreign investment,” he said.
The PVMA chairman called for the immediate withdrawal of these amendments and the restoration of
the parliamentary process. He urged the government to develop a fair and balanced tax policy through
inclusive consultation with trade and industry stakeholders. “The business community is ready to
cooperate with the government, but unilateral decisions and coercive tactics will not be tolerated. What
we need now are serious and practical steps to rebuild confidence,” he concluded.