NAROWAL: Business leaders across Punjab on Friday called on Prime Minister Shehbaz Sharif to intervene against what they described as “anti-business” policies introduced in the federal budget for 2025-26, warning of nationwide protests and industrial shutdowns if their demands are not met.

Hundreds of businessmen and industrialists staged demonstrations under the banner of the Sialkot Chamber of Commerce and Industry (SCCI), supported by several prominent trade bodies, expressing strong resentment over the government’s new tax measures. Industrialists-cum-exporters, typically absent from strikes or sit-ins, gathered in and around the SCCI building following Juma prayers despite the sweltering heat.

SCCI President Ikram-ul-Haq, alongside Patron-in-Chief Sheikh Riaz and other senior businessmen, addressed the gathering, criticising the government’s refusal to reinstate the previously adopted and widely supported Fixed Tax Regime (FTR), which they said had simplified tax compliance for businesses.

Instead, Mr Haq noted, the authorities had introduced punitive provisions such as Sections 37A and 37B of the Sales Tax Act, granting the Federal Board of Revenue (FBR) broad powers to arrest and penalise business owners on mere suspicion — measures he termed draconian and intimidating.

He further lamented the government’s failure to restore the Export Finance Scheme (EFS) and its unfulfilled promise to provide electricity to exporters at the subsidised rate of 9 cents per unit.

Industry leaders in Sialkot, Gujrat and Gujranwala demand repeal of Section 37A and restoration of fixed tax regime

Mr Haq appealed to PML-N leader Nawaz Sharif to urgently take notice of the deteriorating business climate. He announced that the business community would observe a nationwide strike on July 19, warning that the protests could escalate under the slogan “No export, no submission of returns” if the demands were ignored.

Oppressive and unjustified

In Gujrat, the local business community echoed the concerns voiced in Sialkot. The Gujrat Chamber of Commerce and Industry (GtCCI) rejected the Finance Act’s new provisions — particularly Section 37A — labelled as excessive and unjust.

During an emergency meeting chaired by GtCCI President Muneer Ahmed, representatives from major local industries — including electric fans, furniture, and pottery — voiced alarm over the new powers granted to the FBR. They were especially critical of provisions allowing authorities to detain businessmen without due process, and the amendment authorising a 50pc deduction on cash deposits exceeding Rs200,000.

Senior executive member Ahmed Hassan Mattu declared that the Gujrat business community “outrightly rejects” these laws and would oppose them at every available forum.

‘Economic assassination’

In Gujranwala, the Pakistan Cutlery Association (PCA) staged a separate protest against Section 37A of the Sales Tax Act, calling for its immediate repeal and the restoration of the fixed tax regime.

PCA Chairman Jamal Bhutta urged the government to adopt business-friendly and growth-oriented policies. “The government must support business, not stifle it,” he said. Senior Vice Chairman Habibullah Chaudhry categorically rejected the newly imposed Non-Filer Tax Regime (NTR), while Vice Chairman Ilyas Khan proposed a 1.5pc FTR beginning in FY25.

Published in Dawn, July 12th, 2025