Pakistan forms high-level committee to address traders' backlash over new tax law

Pakistan’s Finance Minister and Revenue Senator Muhammad Aurangzeb held a high-level meeting in Islamabad on Tuesday with representatives of the country’s business community, chambers of commerce, and trade bodies to address growing concerns surrounding Section 37A of the Finance Act 2025 and other related tax matters.

During the meeting, Senator Aurangzeb reassured participants of the government’s full cooperation and transparency, stressing that the intent of the new provision is solely to curb large-scale tax evasion—not to target or harass legitimate and law-abiding businesses.

In response to the issues raised by business leaders, it was decided that a special committee will be established under the leadership of Haroon Akhtar Khan, Special Assistant to the Prime Minister on Industries and Production. The committee will also include Minister of State for Finance Bilal Azhar Kayani, PM’s Coordinator for Trade Rana Ehsan Afzal Khan, the Chairman of the Federal Board of Revenue (FBR), and nominated representatives from the business community and chambers of commerce.

The committee is expected to hold comprehensive consultations over the next 30 days to develop a workable and mutually acceptable solution. The outcome of these discussions will be formally presented to the prime minister and the federal cabinet for approval.

Business leaders actively voiced their concerns and proposals during the meeting. The government welcomed the input and pledged to proceed with consensus-building and mutual trust, ensuring that transaction-related issues are addressed without creating undue hardship for the business sector.

As a gesture of goodwill and in light of the government’s responsiveness, the business community has agreed to postpone its planned strike until the committee concludes its review and recommendations.