Sections 37A & 37B: Business community threatens to go on nationwide strike
KARACHI: In a strong show of resistance, the major representative trade bodies of business community including Karachi, Lahore, KPK, and Faisalabad Chambers of Commerce have threatened a nationwide business shutdown in protest against Sections 37A and 37B ofthe Sales Tax Act, if the federal government does not immediately withdraw the controversial laws.
Addressing a press conference at KCCI Auditorium on Thursday alongside representatives of dozens of trade bodies, Karachi Chamber of Commerce and Industry (KCCI) President Jawed Bilwani stated that all chambers across the country are holding consultations on a potential strike and may soon jointly announce a nationwide shutdown of businesses. However, he said that first priority is table talk to resolve this issue.
Jawed Bilwani and Chairman Businessmen Group Zubair Motiwala, while strongly criticizing the newly enacted Sections 37A and 37B of the Sales Tax Act which grant sweeping arrest powers to FBR officials and urged the government to immediately repeal these draconian sections, warning that such excessive overreach not only undermines Pakistan’s image as a business-friendly destination but also severely discourages both local and foreign investors from undertaking any investment initiative.
“Keeping in view the sheer lack of government’s interest, the Karachi Chamber initiated large-scale protest campaigns, beginning with the widespread display of banners across Karachi and now escalating with today’s high-voltage press conference,” President KCCI said.
The presser was also attended by Vice Chairmen BMG Anjum Nisar & Mian Abrar Ahmed, Senior Vice President Zia ul Arfeen, Vice President Faisal Khalil Ahmed, Presidents of seven industrial town associations, former presidents KCCI, prominent business figures along with KCCI Managing Committee Members and a large number of businessmen and industrialists. President Lahore Chamber Mian Abuzar Shad and President Faisalabad Chamber Rehan Naseem Bahrara also addressed the press conference via Zoom.
Bilwani said several other Chambers of Commerce had already held press conferences on this critical issue, and there was a unanimous consensus that Section 37A was completely incompatible with doing business in Pakistan. “The entire business community firmly opposed to this law and fervently demanded repealing of the same and KCCI fully aligns itself with this collective stance,” he added.
He said “KCCI continues to receive an overwhelming number of complaints and expressions of concern regarding these Sections as they believed that business cannot run under the constant threat of Section 37A.”
President KCCI noted that “this law unfairly targets compliant taxpayers rather than addressing the core issues plaguing Pakistan’s taxation system.” “These controversial sections primarily target all the individuals who are already within the tax net instead of acting against only those involved in fraudulent practices such as issuing fake or flying invoices,” he mentioned.
He pointed out that the reality was that 60 percent economy was informal. Among the documented 40 percent, barely 1-2 percent might be involved in such malpractice whereas 98 percent registered taxpayers were fully tax-compliant, yet instead of focusing on a few culprits, the entire community of taxpayers will be harassed under the contentious Section 37A and 37B.
Bilwani said whenever FBR had filed cases against taxpayers, majority of the court verdicts have favoured the taxpayers. Ironically, it is these FBR officers whose actions have proven baseless in majority of the cases yet they are now being given sweeping and unchecked powers under Sections 37A and 37B.
Copyright Business Recorder, 2025