ICCI Urges Repeal of Section 37AA, Warns Against Fear-Based Tax Reforms

ISLAMABAD — The Islamabad Chamber of Commerce and Industry (ICCI) has strongly urged the federal government to immediately repeal Section 37AA of the Income Tax Ordinance, warning that empowering tax authorities to arrest individuals without prior judicial approval could severely harm investor confidence and further destabilize Pakistan’s already fragile economy.

In a joint statement issued on Wednesday, ICCI President Nasir Mansoor Qureshi, Senior Vice President Abdul Rehman Siddiqui, and Vice President Nasir Mehmood Chaudhry criticized the provision as a violation of constitutional rights and a threat to the business environment. “Such unchecked powers create fear, not confidence. They undermine the basic principles of justice and could derail efforts to revive economic stability,” the statement read.

The ICCI leadership said that recent amendments introduced by the government fall short of addressing the core concerns of the business community, describing them as superficial. “These cosmetic changes risk worsening the investment climate and undermining Pakistan’s own economic and export ambitions,” they cautioned.

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Reaffirming the business community’s willingness to pay taxes, the ICCI emphasized that taxation must be fair, transparent, and growth-oriented. “The focus should not be on squeezing existing taxpayers but on broadening the tax base in a rational and equitable manner,” the leaders said.

They also reiterated ICCI’s longstanding support for responsible and progressive tax reforms, urging the government to adopt measures that promote compliance through trust, not coercion. “Tax reform must be about building confidence, not fear,” they concluded.