KCCI urges PM Sharif to repeal sections 37A, 37B of tax law

The Karachi Chamber of Commerce and Industry (KCCI) has urged Prime Minister Shehbaz Sharif to immediately repeal Sections 37A and 37B of the tax law, ARY News reported on Thursday.

The criminal prosecution was initiated under Sections 37A and 37B of the Sales Tax Act, 1990 for the alleged offence of tax fraud, issuance of fake sales tax invoices to claim inadmissible input adjustment/ refund of sales tax.24-Jun-2025

KCCI President Javed Balwani criticized the Federal Board of Revenue (FBR) for being granted unchecked powers, describing the move as authoritarian and termed them draconian and detrimental to Pakistan’s pro-business image.

“These provisions will harm the country’s reputation as a business-friendly destination,” he said.

The KCCI has launched a widespread protest campaign across Karachi, with banners displayed at multiple locations, highlighting traders’ opposition to the controversial sections.

Read more: Action ordered against FBR taxmen on complaints of fish exporters

Balwani warned that granting FBR officers the authority to arrest without oversight will lead to harassment of businesspersons.

“These powers could be misused for personal gain, which will not only disrupt business activities but also halt investment and expansion plans,” he added.

The businessmen body has called on the federal government to ensure accountability within tax enforcement bodies and to create an environment that supports rather than stifles commerce.