LAHORE: The All Pakistan Textile Mills Association (APTMA) has raised serious objections to the recently enacted Tax Laws (Amendment) Ordinance, 2025 (Ordinance No. IV of 2025), calling it an oppressive and overreaching legal move.
Issued on May 2, the ordinance introduces sweeping changes to the Income Tax Ordinance, 2001, which APTMA claims pose a threat to taxpayer rights and legal protections.
In a strongly worded statement released Tuesday, the influential textile industry body urged the federal government to immediately repeal the ordinance and initiate a consultative process with key stakeholders to ensure future tax reforms are equitable, transparent, and aligned with constitutional principles.
The ordinance grants the Federal Board of Revenue (FBR) enhanced enforcement powers, including the authority to recover outstanding taxes directly from bank accounts, seize movable and immovable assets, and seal business premises, following rulings from higher courts—without issuing further notices.
It also introduces provisions enabling FBR officials to be stationed at business and industrial locations to oversee production levels, supply chains, and stockpiles of unsold goods, marking a significant expansion of the tax authority’s surveillance and enforcement capabilities.
APTMA, representing one of the country’s most critical export sectors, expressed alarm over the amendments made to Sections 138 and 140 of the Income Tax Ordinance.
Fundamental Taxpayer Rights
According to the association, the new legal provisions erode fundamental taxpayer rights and effectively grant the FBR powers that override even the jurisdiction of the High Courts and the Supreme Court.
“The amendments strip away the legal safeguards taxpayers rely on, including judicial oversight and protection under established legal timelines,” APTMA said.
“The FBR is now empowered to enforce recoveries and punitive actions regardless of court-granted relief, a move that severely undermines the integrity of the judicial system.”
The statement warned that the ordinance dangerously increases the FBR’s discretionary authority, further fueling concerns of overreach and misuse of power—an issue that has long plagued the tax authority’s relationship with the business community.
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By disregarding court rulings and bypassing procedural protections, APTMA argued, the ordinance compromises the rule of law and undermines due process, thereby setting a troubling precedent.
“This approach will only deepen the atmosphere of fear and unpredictability for businesses that are already operating under difficult economic conditions,” the association stated.
“Such measures discourage investment, hamper growth, and could derail any potential recovery in the industrial sector.”
In contrast, APTMA welcomed the recent decision by the Monetary Policy Committee (MPC) to lower the policy rate by 100 basis points, calling it a positive step toward economic revival.
“This rate cut is a welcome development that could stimulate economic activity and provide breathing space for industries,” APTMA said.
However, it added that a deeper cut in the policy rate was warranted given the current economic environment.
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“Given the challenges facing the manufacturing sector, a more aggressive monetary easing would have been justified to reinvigorate production, enhance competitiveness, and attract new investment,” the statement concluded.
