FinMin Aurangzeb engages business community over sales tax concerns

ISLAMABAD: Finance Minister Muhammad Aurangzeb arranged a high-level meeting with representatives from chambers of commerce and trade associations to discuss the implications of Section 37A of the Finance Act 2025, ARY News reported.

This step was taken to ease tensions with Pakistan’s business community. The meeting, held with the support of the Ministry of Finance, included the participation of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Karachi Chamber of Commerce and Industry (KCCI), Lahore Chamber, and other main stakeholders.

The discussion centred on traders’ concerns regarding the newly introduced Section 37A, which highlights procedures for investigating and arresting individuals involved in tax fraud exceeding Rs. 50 million.

Muhammad Aurangzeb guaranteed attendees that the intention of the government is not to annoy honest businesses but to control large-scale tax evasion.

Muhammad Aurangzeb emphasised that Section 37A of the Finance Act 2025 is created to target planned fraud, not genuine commercial activity.

To deal with the concerns, a committee was formed, led by Special Assistant Haroon Akhtar. The committee has Minister of State Bilal Azhar Kayani, Rana Ehsan Afzal Khan, FBR Chairman, and representatives from the business community.

It will execute consultations over the next month and provide an amicable resolution to the Prime Minister and Cabinet.

Business leaders, including FPCCI President Atif Ikram and KCCI President Javed Bilwani, demanded to suspend Section 37A of the Finance Act 2025 for a month, threatening of nationwide strikes if the law is not deferred.

Lahore Chamber President Abu Zar Shad resonated with the sentiment, stating that traders would refrain from protest only if the government temporarily halts the enforcement of the controversial section.

The finance minister repeated his commitment to inclusive policymaking and promised to seriously consider the community’s proposals.

The meeting ended with a consensus on minimising disturbances for traders and ensuring transparent enforcement mechanisms.