ISLAMABAD: Business leaders have agreed to postpone their planned strike after a key meeting with Finance Minister Muhammad Aurangzeb, in which it was decided to form a committee for consultations on Section 37A of the Finance Act 2025.
According to a statement issued by the Ministry of Finance on Tuesday, the meeting took place in Islamabad and was attended by representatives of the business community, chambers of commerce, and trader organizations from across the country.
During the session, the traders expressed serious concerns over the newly introduced Section 37A and other related tax matters. Finance Minister Aurangzeb assured the participants that the government is committed to transparency and does not intend to target honest businesses. He said the new tax measures were aimed solely at preventing large-scale tax fraud.
A consensus was reached to establish a high-level committee under the chairmanship of Haroon Akhtar Khan, Special Assistant to the Prime Minister on Industries and Production. Other members will include Minister of State for Finance Bilal Azhar Kayani, PM’s Coordinator for Commerce Rana Ehsan Afzal, FBR Chairman, and nominated representatives from business groups and chambers.
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The committee has been tasked to complete consultations and propose a mutually agreed and practical solution within 30 days, which will then be submitted to the Prime Minister and federal cabinet.
Business leaders openly shared their reservations and suggestions, while the government assured them of serious consideration and cooperation moving forward. It was also agreed that efforts will be made to remove traders’ concerns and ensure that the new policies do not disrupt business activities.
The statement confirmed that the strike call from traders will be postponed until the committee concludes its work.
Separately, media reports said the All Pakistan Traders Association delegation met FBR officials, who assured that no tax will be deducted on bank deposits of up to Rs200,000.
The FBR further clarified that digital invoicing will not apply to small retailers or traders. It will be introduced gradually for business-to-business transactions involving sales tax-registered companies. Traders will also be included in the digitalisation committee.
Officials clarified that Sections 37A and 37B of the Sales Tax Act will not be applied to small traders, and no large-scale industrialist will be arrested under these provisions. The primary objective of these sections is to prevent the use of fake invoices.
The meeting also agreed that a separate session will be held to develop a new mechanism for handling customs raids in markets.
FBR also confirmed that consultations will be held with traders regarding tax reforms related to mobile phones.
Prominent trader leaders including Kashif Chaudhry, Khawaja Salman Siddiqui, and Sharjeel Mir presented the traders’ stance, stating they would not accept what they called “oppressive taxation.”
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