ISLAMABAD: In a bid to preempt countrywide unrest, Finance Minister Muhammad Aurangzeb on Tuesday constituted a high-level committee to hold consultations with traders on budgetary measures aimed at documenting the economy.

The multi-stakeholder committee will conduct a 30-day consultation process to develop a consensual and actionable proposal, which will be submitted to Prime Minister Shehbaz Sharif and the federal cabinet.

According to sources present at the meeting, officials from various ministries clarified that the new tax amendments are primarily intended to curb large-scale sales tax fraud. The committee will only consider trader concerns that are deemed genuine and substantiated, the officials added.

Traders were firmly told that the government remains committed to documenting the economy and discouraging cash-based transactions. Several trade associations have already called for strike actions in protest against the new measures.

Committee tasked with addressing concerns over tax reforms and documentation efforts within 30 days

An official statement announced that the decision was made during a high-level meeting chaired by Finance Minister Aurangzeb, which brought together representatives from Pakistan’s business community, chambers of commerce, and trade organisations. The session primarily addressed trader concerns over Section 37A and other provisions introduced in the Finance Act 2025.

The committee will be led by Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, and will include Minister of State for Finance Bilal Azhar Kayani, the Prime Minister’s Trade Coordinator Rana Ehsan Afzal Khan, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial, and nominated members from the business community.

Business leaders expressed concerns about the impact of the new legislation on routine commercial transactions. In response, Mr Aurangzeb assured full transparency and cooperation from the government, reiterating that the reforms aim to combat widespread tax evasion, not to harass legitimate businesses.

The traders also shared their reservations and proposals, prompting the government to promise a considerate and inclusive approach. It was mutually agreed that efforts would be made to avoid placing undue hardship on the business community during the implementation of the reforms, the official announcement added.

Under the Finance Act 2025, a new Section 37A has been inserted into the Sales Tax Act 1990, empowering the FBR to constitute a three-member committee that can authorise the Commissioner to issue an arrest warrant against individuals involved in tax fraud, provided the tax loss exceeds Rs50 million.

Published in Dawn, July 16th, 2025