KATI chief voices concern after court rejects plea challenging taxmen’s new powers

KARACHI: The President of Korangi Association of Trade and Industry (KATI), Muhammad Ikram Rajput, has expressed deep concern over the federal constitutional court’s decision to reject the plea declaring raids against taxpayers without a case unlawful and the subsequent granting of additional powers to tax authorities.

Rajput said that under the new powers, tax officials would be authorized to conduct raids at business premises at any time without prior judicial approval and to seize computers, documents and accounts.

He noted that such authority has created anxiety within the business community.

He termed these extraordinary and disproportionate powers as a direct intrusion into business autonomy, warning that commercial activities could be adversely affected.

According to Rajput, the business sector is already burdened by rising costs and financial pressures, and such measures would further increase uncertainty in the market while potentially encouraging corrupt practices.

He cautioned that the misuse of unchecked powers could lead to harassment and bribery, undermining investor confidence and harming overall economic activity.

The KATI president urged the government to ensure that the Federal Board of Revenue (FBR) and relevant institutions are bound by clear standard operating procedures (SOPs), so that no action is taken at business premises without prior notice and unnecessary pressure on legitimate commercial activities is avoided.

Rajput emphasized that sustainable economic stability can only be achieved through a transparent, balanced and business-friendly tax system. He said the primary objective of government policy should be to foster trust and facilitate the business community.

He added that KATI would continue consultations with relevant authorities to help shape a tax framework that not only meets revenue targets but also supports economic growth and protects the interests of the business community.

Copyright Business Recorder, 2026