The trade organizations and associations of Karachi have declared Section 37AA in the federal budget controversial and have launched a protest campaign against it.
According to a report, protest banners have been put up at various locations in the city by trade organizations. The Karachi Chamber of Commerce and Industry (KCCI) has stated that this law grants undue powers to the Federal Board of Revenue (FBR), which has created a wave of concern among traders.
Banners put up by the Karachi Chamber of Commerce and Industry at various places in the city carry slogans against the controversial section. The KCCI stated that a large number of traders have already left the country, and now such laws are being enforced to further harass the remaining traders.
The traders’ stance is that on one hand, the government claims it will facilitate traders, while on the other hand, the FBR is being given policing powers, which provide a pretext to humiliate any trader at any time.
What is Section 37 AA?
Section 37AA, introduced in Pakistan’s Finance Bill 2025 and effective from July 1, 2025, grants the Federal Board of Revenue (FBR) extensive powers to freeze bank accounts, seize assets, and arrest taxpayers based solely on suspicion of tax evasion, without requiring prior conviction or judicial oversight.
