PTBA urges President to withdraw tax amendments ordinance

KARACHI: Pakistan Tax Bar Association (PTBA) has requested President Asif Ali Zardari to immediately withdraw the Tax Amendments Ordinance 2025, terming it as an infringement upon the fundamental rights of taxpayers as guaranteed under the Constitution of Pakistan.

In a letter to President Asif Ali Zardari, the PTBA called for the immediate withdrawal of the ordinance after conducting a thorough review of its provisions.

“Taxpayers are the backbone of our economy,” the PTBA stated. “However, following the 26th Constitutional Amendment, the independence of the judiciary has been restricted even in cases where taxpayers are prima facie entitled to a stay order against the alleged tax demand.”

The bar highlighted a particularly controversial provision requiring taxpayers to deposit 30% of disputed amounts to obtain stay orders, even from high courts.

This requirement places an excessive burden on taxpayers before they can access judicial relief, PTBA said.

The letter further alleged that the ordinance grants taxation officers “unchecked and arbitrary powers” that could lead to harassment and create undue hardship for taxpayers nationwide.

Describing it as the effective nullification of appeal rights, the PTBA claimed that tax demands raised by officers are now recoverable within timelines dictated solely by those same officers, rendering appellate remedies “redundant and ineffective.”

“Such unchecked discretion promotes maladministration and injustice,” the letter warned.

The PTBA expressed concerns about broader economic implications, suggesting that the legislation could damage Pakistan’s investment climate.

“Investors will be reluctant to invest in Pakistan if administrative authorities are empowered with excessive, unregulated authority while removing meaningful recourse to appellate remedies,” the PTBA cautioned.

The tax bar has called for not only the withdrawal of the ordinance but also the suspension of any actions already taken under its provisions.

Copyright Business Recorder, 2025