The SITE Association of Industry (SAI) has made an urgent appeal to the Prime Minister of Pakistan to withdraw the recently promulgated Income Tax Ordinance (Ordinance No. IV of 2025), citing serious concerns over its constitutionality and adverse impact on the formal business sector.
In an appeal to the Prime Minister on 9th May, 2025, SAI President Ahmed Azeem Alvi acknowledged the government’s ongoing efforts to improve the business environment but warned that the proposed amendments risk derailing these efforts by imposing harsh and disproportionate measures on formal sector businesses.
“The new provisions undermine the documented economy, discourage compliance, and may reverse the progress made in broadening the tax base,” SAI President stated. “These amendments are not only economically burdensome but also legally problematic. They appear to violate constitutional guarantees, the principles of natural justice, and the fundamental concept of ‘no taxation without representation’ enshrined in Article 77 of the Constitution.”
SAI emphasized that bypassing parliamentary procedures to implement such sweeping changes sets a troubling precedent and damages investor confidence at a time when economic stability is desperately required. The SITE Association has urged the government for immediate withdrawal of the controversial amendment.
