Business Leaders Warn of Strike Over Tax Law

Business leaders in Pakistan are sounding alarms over controversial provisions in the Sales Tax Act, specifically Sections 37A and 37B, which they describe as overly harsh and harmful to the business climate. The Karachi Chamber of Commerce and Industry (KCCI) has voiced strong support for a potential nationwide strike if these sections are not repealed, signaling growing unrest among the business community.

The KCCI, alongside seven industrial associations, has criticized the tax measures for targeting compliant taxpayers while failing to address widespread tax evasion. According to industry representatives, only a small fraction of businesses engage in malpractices, yet the new laws impose stringent penalties and arrest powers that could lead to harassment and corruption. The measures are seen as particularly burdensome for small and medium enterprises, which form a significant part of Pakistan’s economy.

The chamber highlighted multiple issues in the tax framework, noting that some provisions make compliance nearly impossible. Leaders have called for urgent legislative changes to rectify these concerns, warning that failure to act could drive investors away and escalate protests. The business community argues that the government should focus on tackling fraudulent practices, such as fake invoicing, rather than penalizing those already within the tax system.

Sentiment on platforms like X reflects similar concerns, with users discussing the potential economic fallout and the need for fairer tax policies. As tensions rise, the threat of a unified strike looms, which could disrupt trade and commerce across the country if the government does not address these grievances promptly.

Published in SouthAsianDesk, July 4th, 2025

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