Latest news with #AtifIkramSheikh
Business Recorder
12 hours ago
- Business
- Business Recorder
Tax officials' new powers: FPCCI mulling moving the court
KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has unequivocally rejected the new powers granted to tax officials in the recently announced Federal Budget, branding them as 'excessive, overly-subjective, and harassment-prone.' During a press conference in Karachi, FPCCI leadership announced their intention to challenge these authorities in superior courts, specifically those enabling taxmen to withdraw funds from business accounts and conduct raids on business premises without prior notice. The FPCCI leadership urged the federal government to withdraw these stringent measures before the budget's final passage from parliament to restore confidence within the business community. FPCCI President Atif Ikram Sheikh emphasized that tax collection targets can only be met if industrialists and exporters are actively engaged through a comprehensive consultative process. He lamented that the budget largely overlooks the necessary steps to empower the business community to realize the Prime Minister's vision for export-led growth. Sheikh further elaborated on a globally established principle: increased intervention or interaction by tax collectors with taxpayers tends to undermine fairness, transparency, and impartiality, as heightened human-to-human interactions and subjective human judgments become a source of nuisance. Saquib Fayyaz Magoon, Senior Vice President of FPCCI, demanded the restoration of the Fixed Tax Regime (FTR) for exporters in its original form and for a long-term duration. This, he argued, is crucial for bringing clarity, certainty, and consistency to taxation policies, thereby attracting both Foreign Direct Investment (FDI) and domestic investment by ensuring Pakistan remains competitive as a country. Magoon also highlighted the necessity of broadening the Export Facilitation Scheme (EFS) to include local manufacturers, warning that without such inclusion, Pakistani products would face supply line disruptions and a lack of competitiveness in regional and international markets. He further expressed resentment that the FPCCI's recommendations for special incentive packages for the high-growth Information Technology, mines & minerals, and fishing industries were disregarded in the Federal Budget. FPCCI Vice President Asif Sakhi urged tax authorities to cease accusing the business community of tax evasion or theft. Instead, he called for a transformation of the tax machinery into a facilitative body that engages with taxpayers through amicable and respectful behaviour. During the press conference, FPCCI Vice President Aman Paracha proposed the formation of a high-powered fact-finding committee to ascertain the root cause of the FBR's inability to achieve the tax collection target for fiscal year 2025. Vice President Nasir Khan highlighted a concerning trend, stating that many businessmen have already relocated to more lucrative and stable investment, trade, and industrial destinations, while those remaining are struggling to operate their factories without incurring losses. Another concern raised by the FPCCI was the restriction imposed on Special Economic Zones (SEZs) developers for a period of 10 years or until tax year 2035, whichever comes first. Copyright Business Recorder, 2025
Business Recorder
2 days ago
- Business
- Business Recorder
LCCI rejects proposed powers to FBR to arrest businessmen
LAHORE: Senior Vice President of the Lahore Chamber of Commerce and Industry (LCCI) Engineer Khalid Usman, has categorically rejected the proposed discretionary powers to the Federal Board of Revenue (FBR), including the authority to arrest businessmen. He was speaking at the All Chambers Convention presided over by FPCCI President Atif Ikram Sheikh. Engineer Khalid Usman said that such excessive powers will not only disrupt the business environment but will also create a sense of insecurity among the business community. He said that the FBR already possesses significant powers and any further addition, especially the power to arrest, would severely damage business confidence in the country. He urged the government to simplify and rationalize the taxation system to encourage more people to voluntarily enter the tax net instead of creating an atmosphere of fear and intimidation. The business community is the backbone of the national economy and ignoring their concerns is neither wise nor productive. Copyright Business Recorder, 2025
Business Recorder
2 days ago
- Business
- Business Recorder
FPCCI rejects law allowing businessmen's arrest
LAHORE: The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has vehemently opposed the recently enacted law permitting the arrest of business community members, terming it entirely unacceptable. FPCCI President Atif Ikram Sheikh, alongside Patron-in-Chief of the United Business Group (UBG) S.M. Tanveer, FPCCI Vice Presidents Zaki Aijaz and Tariq Jadoon, and other prominent business leaders, expressed their strong reservations during a press conference held at the FPCCI Regional Office in Lahore. The business leaders announced their decision to halt all industrial operations and symbolically hand over factory keys to the government, challenging it to manage the industries itself. Criticizing the introduction of Section 37AA, they declared that if the government intended to arrest businessmen, they could no longer continue running their factories. While reaffirming their willingness to cooperate with the government, they emphasized that the business community has always supported national revenue objectives but would not tolerate any form of harassment. The leaders reiterated their longstanding demand to reduce electricity tariffs to 9 cents per unit, pointing out that despite a decline in the Consumer Price Index (CPI), interest rates remain unjustifiably high. They also condemned the imposition of an 18% sales tax on solar energy solutions, labelling it an unreasonable measure. Additionally, they called for the immediate reinstatement of the Final Tax Regime (FTR) and the complete restoration of the Export Facilitation Scheme (EFS) in its original form. FPCCI President Atif Ikram Sheikh stated, 'We are fighting for the rights of the business community. Until all policy anomalies are resolved, we stand in full solidarity with all trade bodies.' He further revealed that a meeting with the Prime Minister of Pakistan would soon be arranged to seek resolution on these critical issues. The business community has given the government a seven-day ultimatum to address their concerns. To formalize negotiations, an eight-member committee has been formed under the leadership of FPCCI President Atif Ikram Sheikh. The committee includes FPCCI Vice President Zaki Aijaz, former FPCCI President Zubair Tufail, Chairman of the FPCCI Policy Advisory Board Mian Zahid Hussain, Sialkot Chamber President Ikram-ul-Haq, former Faisalabad Chamber President Dr. Khurram Tariq, FPCCI Executive Committee Member Momin Ali Malik, and Khyber Pakhtunkhwa representative Fahad Ishaq. The committee will engage with the government to seek immediate redressal of the business community's grievances. The FPCCI's strong stance underscores the growing frustration within Pakistan's business sector over policies perceived as detrimental to industrial growth and economic stability. The coming days will be crucial in determining whether the government and business leaders can reach a consensus to avert further disruptions. Meanwhile, the FPCCI's Businessmen Panel (BMP) has said that the entire business community of Pakistan, including all major chambers of commerce and industry as well as trade associations across the country, has unanimously rejected the recently introduced Section 37AA of the Sales Tax Act, terming it a draconian and unconstitutional law that grants sweeping arrest powers to the Federal Board of Revenue (FBR). BMP Chairman and FPCCI former president Mian Anjum Nisar said that businessmen strongly condemned the provision, warning that such an oppressive step has not been witnessed even during the colonial British era. Addressing a trade delegation of trade and industrial representatives here, he said that representatives from the Lahore Chamber of Commerce and Industry, Karachi Chamber, Islamabad Chamber, Rawalpindi Chamber, Faisalabad Chamber, Sialkot, Quetta, and Peshawar Chambers, along with numerous sectoral trade and industrial bodies, have called for the immediate withdrawal of Section 37AA. The entire private sector stands united in opposition, declaring that the FBR's move to criminalize business activities on mere suspicion of tax evasion is unacceptable and will not be tolerated. He said that the Businessmen Panel (BMP), representing the country's largest and most credible platform of industrialists, exporters, and traders, has pledged to stand firm with all chambers and trade bodies in this cause. The BMP has warned that this issue will not fade away until the unjust law is removed and meaningful engagement begins. The government must decide whether it wants to build the economy with the private sector—or break it under the weight of fear and authoritarianism. Anjum Nisar said that the business community fears that this new law, which gives tax officers' unchecked authority to arrest any businessman without court permission, based solely on suspicion, will cause irreparable harm to Pakistan's fragile economy while FBR has no good record in this regard. He argued that such laws destroy investor confidence, discourage industrial activity, and trigger capital flight at a time when the country is already facing serious economic challenges. He stressed that laws like Section 37AA violate the Constitution of Pakistan, particularly Article 10A, which ensures the right to a fair trial and due process. He said businessmen from across Pakistan have questioned how arrests without proof or trial can be justified in a democratic society. The mere allegation of underreporting or a suspected tax shortfall should not be sufficient grounds for arresting businessman. Legal experts and constitutional scholars have echoed these concerns, pointing out that FBR officers are being handed police-like powers without any judicial oversight or accountability mechanisms, opening the door to potential abuse, corruption, and harassment. The business community has demanded that tax collection and compliance remain a civil matter, not a criminal one. Turning tax disputes into criminal offenses sends a negative message to local and foreign investors, who are already hesitant to operate in Pakistan due to inconsistent policies and high costs of doing business. Entrepreneurs warn that such a hostile regulatory environment will drive many businesses into the undocumented economy, reduce tax collection instead of increasing it, and severely damage export potential and job creation. Trade and industry bodies have also noted that this law will lead to a culture of fear and uncertainty in the market. Businesses are already struggling with rising electricity and gas tariffs, volatile exchange rates, excessive taxation, and declining demand. Adding the threat of arrest by tax authorities will only push more people out of formal business activity and erode trust between the government and the private sector. He warned that FBR's earlier coercive actions, such as freezing accounts and sealing premises, were counterproductive. Now, granting arrest powers without trial has crossed all limits. He condemned the law as a dangerous attempt to control the business community through intimidation rather than policy reform. He also voiced strong objections, declaring it an anti-business and unconstitutional measure that would never be accepted. Anjum Nisar demanded that the government take immediate notice of this matter and revoke Section 37AA. Instead of threatening legitimate taxpayers, the FBR should focus on broadening the tax base, simplifying tax procedures, and encouraging voluntary compliance through dialogue and reforms. Arrests and coercive measures have never delivered results in the past and will not work now. Sustainable tax collection can only be achieved through trust, transparency, and facilitation—not fear and force. If this law is not withdrawn, the private sector has warned that it may resort to nationwide protests, shutter-down strikes, and legal action. The business community will not accept any law that treats entrepreneurs and job creators like criminals. The collective voice of Pakistan's chambers and trade associations must not be ignored. Their message is clear: arrest powers have no place in tax enforcement, and the law must be repealed to restore sanity and balance in economic policymaking. The business community wants reform, not repression. They stand ready to cooperate with the government in tax compliance but will resist any attempt to criminalize entrepreneurship. Copyright Business Recorder, 2025
Business Recorder
4 days ago
- Business
- Business Recorder
Policy rate: business, industrial community expresses disappointment
KARACHI: Business and industrial community have expressed disappointment over keeping police rate at 11 percent. Atif Ikram Sheikh, President FPCCI, has apprised that the business, industry and trade community of Pakistan is disappointed with the monetary policy as it continues to be based on a heavy premium vis-à-vis Consumer Price Index (CPI) and the State Bank of Pakistan (SBP) has maintained status quo in the policy rate in its Monday meeting. Atif Ikram Sheikh highlighted that the CPI, as per government's own statistics, stood at 3.50 percent in May 2025; but, the policy rate continues to be 11.0 percent as of today – which reflects a premium of 750 basis points (bps) as compared to inflation and it makes no economic sense, he added. Atif Ikram Sheikh continued that, after deliberations from the apex trade and industry platform with all industries and sectors, FPCCI had demanded a single-stroke rate cut of 400 basis points during the Monday's monetary policy committee (MPC) meeting to rationalize the key policy rate; and, align it to the vision of special investment facilitation council (SIFC) – and, the Prime Minister's vision for industrial development, import substitution and export growth. FPCCI Chief noted that the CPI is expected to be in the range of 2 – 4 percent for the months of June – July 2025 as trade, industry and economists' expectations. Therefore, he had demanded, key policy rate should have been brought down to 7 percent with the proposed reduction of 400 bps in today's monetary policy decision. Sheikh reiterated the apex body's stance that cost of doing business; ease of doing business and access to finance in Pakistan is at the lowest as compared to all its competitors in the export markets. Fortunately, the decisive downward trend in inflationary pressures has been continuing for the past many months; and, the only viable solution to get back on economic growth trajectory is to support industry and exports, he added. Saquib Fayyaz Magoon, SVP FPCCI, proposed that the interest rate should come down to single digits immediately to enable Pakistani exporters to some extent to compete in the regional and international export markets through reducing the cost of capital in a meaningful way. President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Jawed Bilwani has expressed profound disappointment over the State Bank of Pakistan's (SBP) decision to maintain the policy rate unchanged at 11 percent, calling it an overly cautious and counterproductive stance in light of easing inflation and deteriorating industrial competitiveness. In a statement issued on Monday, Bilwani stated, 'The business community had pinned hopes on a long-overdue reduction in the interest rate to single digit to help kick-start economic activity, reduce the cost of doing business, and support struggling industries. By choosing to maintain the status quo, the SBP has not only ignored market signals but has also dampened business sentiment at a time when the economy urgently requires a boost.' He noted that inflation has clearly bottomed out, with independent analysts projecting it to remain between 6 to 7 percent for FY26, while both the IMF and the government estimate it at 7.5 percent. In light of these forecasts, the decision to maintain the policy rate at a high level of 11 percent appears unjustified. While the State Bank cited the uptick in inflation to 3.5 percent in May as a reason, this rate still remains relatively low and provides ample room for a further reduction in the interest rate; a step that, regrettably, was not taken, he added. Copyright Business Recorder, 2025
Business Recorder
13-06-2025
- Business
- Business Recorder
Finance Bill: FPCCI demands withdrawal of anti-business measures
KARACHI: On behalf of the entire business, industry and trade community of Pakistan Atif Ikram Sheikh, President FPCCI, has demanded that the government should withdraw harsh and anti-business taxation measures from the Finance Bill before it is passed through the parliament. What the country needs are a pro-business, investment-friendly and growth-oriented fiscal policy framework as the economy has stabilized and poised for growth, he added. Atif Ikram Sheikh maintained that the tax collection target can only be achieved if industrialists and exporters are taken onboard through a comprehensive consultative process. However, he lamented, budget misses the measures needed to enable the business community to materialize the vision of PM to achieve export-led growth. He maintained that sweeping discretionary authorities given to the taxmen would be detrimental to business and investor confidence in the country – and, will give rise to harassment, corruption and maladministration. FPCCI Chief elaborated that it is an established fact and practice globally that the more a tax collector is allowed to intervene or interact with the taxpayer, the more it is likely to undermine the principles of fairness, transparency and impartiality due to increased role of human-to-human interaction and human judgement becomes a nuisance. Therefore, we do not need to reinvent the wheel in this matter, he added. Atif Ikram Sheikh appreciated the reduction in super tax; downward rationalization of tax slabs for salaried individuals; simplification of income tax return form for salaried class and SMEs – as it was one of FPCCI's longstanding demands – and the much needed increase in the defence spending to ensure geo-economics, trade routes, supply lines and geostrategic security and integrity of the country. Saquib Fayyaz Magoon, SVP FPCCI, demanded that fixed tax regime (FTR) should be restored for exporters in its original form and shape for a long-term duration to bring clarity, certainty and consistency in the taxation policies. We can only attract FDI and domestic investment, if we remain competitive as a country, he added. Saquib Fayyaz Magoon highlighted that instead of broadening Export Facilitation Scheme (EFS) through including local manufacturers in its scope – in line with the aggregated feedback of the all sectors and industries through the apex trade bodies' platform of FPCCI – the government has imposed 18% sales tax on raw materials; which will result in increased cost of production; supply line disruptions and lack of competitiveness in the regional and international markets for Pakistani products. SVP FPCCI also expressed his resentment that FPCCI's recommendation to bring special incentives packages for the IT & ITeS; Mines & Minerals and Fishing industries in the Federal Budget 2025 – 26 has been ignored. These are high-growth areas and can grow exponentially, he added. Copyright Business Recorder, 2025
