APTMA Protests ‘Draconian’ Tax Ordinance, Demands Immediate Withdrawal

The All Pakistan Textile Mills Association (APTMA) has voiced strong objections to the recently enacted Ordinance No. IV of 2025, which was issued on May 2nd. APTMA has described the ordinance as a “draconian measure” due to its “extensive and concerning amendments to the Income Tax Ordinance, 2001”.

In a statement issued this Tuesday, APTMA has called upon the government to promptly revoke these amendments and to start discussions with relevant parties. The association insists that any modifications to tax laws should be equitable, open, and compliant with legal standards.

On Saturday, the federal government introduced the “Tax Laws (Amendment) Ordinance, 2025”. This legislation allows for immediate recovery of taxes from the bank accounts or properties of taxpayers, and enables the sealing of business locations following court rulings without additional warnings.

Furthermore, the ordinance authorizes the Federal Board of Revenue (FBR) to place tax officials at business and manufacturing sites to oversee the production, distribution, and inventory of unsold items.

APTMA, a significant trade body in the nation, has expressed worry that revisions to Sections 138 and 140 of the Income Tax Ordinance could deprive taxpayers of their legal entitlements and protections.

According to APTMA, these amendments unduly expand the authority of the FBR, potentially surpassing the authority of the High Courts and the Supreme Court.

The association’s statement claims that the revised regulations disregard established legal procedures and judicial decisions, thus providing the FBR with excessive power to enforce its demands irrespective of legal remedies.

APTMA also cautioned that the ordinance significantly broadens the discretionary powers of the FBR, which is often criticized for its heavy-handed tactics and harassment of law-abiding taxpayers.

The association argues that by overriding court rulings and set deadlines, the ordinance threatens the integrity of the judicial system and the constitutional right to due process.

APTMA warns that this move could intensify the environment of fear and uncertainty for legitimate businesses, which could be harmful to both investment and economic advancement.

On a positive note, APTMA has expressed its approval of the Monetary Policy Committee’s decision to lower the policy rate by 100 basis points.

APTMA sees this reduction as a positive step toward stimulating economic activity and offering some relief to the struggling industrial sector. Nonetheless, the association suggests that a more substantial decrease in the policy rate was both justifiable and essential.