ISLAMABAD: Finance Minister Muhammad Aurangzeb held a high-level meeting with representatives from chambers of commerce and trade associations to address the implications of Section 37A of the Finance Act 2025, News reported.
The government took this step to ease tensions with Pakistan’s business community. The Ministry of Finance organized the meeting, which included participation from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Karachi Chamber of Commerce and Industry (KCCI), Lahore Chamber, and other key stakeholders.
The discussion primarily focused on traders’ concerns about the newly introduced Section 37A. Specifically, the section outlines procedures for investigating and arresting individuals involved in tax fraud exceeding Rs. 50 million. Moreover, participants expressed apprehension over how these measures might affect legitimate business operations.
Muhammad Aurangzeb assured the attendees that the government does not intend to harass honest businesses but aims to curb large-scale tax evasion.
Muhammad Aurangzeb emphasized that the government designed Section 37A of the Finance Act 2025 to target deliberate tax fraud, not legitimate commercial activity.
To address the growing concerns, the government promptly formed a committee led by Special Assistant Haroon Akhtar. In addition, the committee includes Minister of State Bilal Azhar Kayani, Rana Ehsan Afzal Khan, the FBR Chairman, and representatives from the business community.
Over the next month, the committee will actively conduct consultations and, ultimately, present an amicable resolution to the Prime Minister and Cabinet.
Business leaders, including FPCCI President Atif Ikram and KCCI President Javed Bilwani, demanded a one-month suspension of Section 37A of the Finance Act 2025 and warned of nationwide strikes if the law is not deferred.
Lahore Chamber President Abu Zar Shad echoed the sentiment, stating that traders would avoid protesting only if the government temporarily suspends enforcement of the controversial section.
Furthermore, the finance minister reaffirmed his commitment to inclusive policymaking and pledged to give serious consideration to the business community’s proposals.
The meeting concluded with a consensus to minimize disruptions for traders and to ensure transparent enforcement mechanisms.
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