The business community across Pakistan has announced its support for a nationwide shutdown scheduled for July 19, in protest against what it describes as “massive” and burdensome tax measures introduced under the Finance Act 2025-26, according to a report by Dawn.
In a joint press conference held at the Sarhad Chamber of Commerce and Industry (SCCI), President Fazal Moqeem Khan, Senior Vice President Abdul Jalil Jan, and executive committee members voiced strong objections to the Finance Act, which came into effect on July 1.
Warning that the protest could escalate into a sustained movement if their demands are ignored, Fazal Moqeem Khan said, “We’ve been left with no option but to consider more drastic steps, including halting the filing of sales and income tax returns.” He added that the growing discontent within the SCCI reflects deepening frustration with the current economic policies.
Fazal expressed solidarity with the Karachi Chamber of Commerce and Industry (KCCI), which had earlier flagged 30 tax and customs measures as threats to business viability. “The SCCI stands shoulder to shoulder with all business organisations calling for the immediate rollback of these unfair laws,” he stated.
He singled out Sections 37A and 37B of the Income Tax Ordinance as “draconian and unprecedented.” He also criticised the new clause under Section 21(s), which disallows tax deductions for any cash transaction exceeding Rs200,000—even if the payment is made directly into the supplier’s bank account. “This could result in the supplier being penalised by losing 50 percent of the expense for tax purposes,” he warned.
Fazal also objected to mandatory digital invoicing and e-billing systems, questioning the expectation that taxpayers should perform the Federal Board of Revenue’s (FBR) functions at their own expense. “This will only deepen the divide between the tax authorities and the business community,” he argued.
He further criticised the FBR for bypassing the traditional consultative process typically followed before the passage of a finance bill. “These discussions usually involve senior tax officials and the finance minister. But this year, the process was ignored completely, leaving no room for input or consensus,” he said.
According to Fazal, several committee members resigned in protest after the Finance Bill was fast-tracked through Parliament, despite vocal objections from both business groups and parliamentary standing committees. He urged Prime Minister Shehbaz Sharif to immediately withdraw the most controversial provisions, including Sections 37A, 37B, 21(s), 40(c), and 8B of the Sales Tax Act.
Meanwhile, the Swat Chamber of Commerce and Industry (also abbreviated as SCCI) has announced plans to launch a wider anti-tax campaign. The chamber aims to bring together political parties, trade bodies, business associations, lawyers, journalists, and citizens under a unified platform to oppose the new tax regime.
During a meeting chaired by Swat SCCI President Noor Mohammad Khan, participants condemned the imposition of a 10% sales tax and called for the restoration of Malakand Division’s special status. “If the government cannot provide jobs to the youth, it has no right to impose taxes,” they said, citing high unemployment and the region’s history of natural disasters.
Participants also criticised recent anti-encroachment drives, accusing local authorities of overreach and abuse of power. The meeting concluded with the formation of a committee to assess the status of land previously acquired for the chamber and explore options for relocating to a more suitable property.
