ISLAMABAD: Economic Policy and Business Development (EPBD) - a Think Tank has asked the government to immediately withdraw Tax Laws (Amendment) Ordinance 2025, as it would create cash flow disruptions for business community and undermines judicial safeguards that protect businesses during tax disputes. According to an analysis of EPBD of the said Ordinance on Tuesday, it explained that the Tax Laws (Amendment) Ordinance 2025 (Ordinance No. IV of 2025), promulgated by the President on May 2, 2025, introduces three significant amendments that pose grave concerns for Pakistan’s business community at a critical economic juncture. Our analysis reveals serious issues with these amendments. First, changes to Sections 138(3A) and 140(6A) of the Income Tax Ordinance empower tax authorities to demand immediate payment when cases are decided by courts, effectively nullifying established legal timeframes and judicial stays. This creates potential for catastrophic cash flow disruptions and undermines judicial safeguards that protect businesses during disputes. Second, the new Section 175C grants unprecedented authority to tax officials to maintain continuous presence at business premises for monitoring operations. This surveillance mechanism will disrupt business activities, compromise confidential information, and increase compliance costs for enterprises already struggling in challenging economic conditions. Third, amendments to the Federal Excise Act dramatically broaden the government’s seizure powers, allowing confiscation of goods based on technical non-compliance while extending enforcement authority beyond specialized tax officials to any government officer, creating heightened business uncertainty. These measures appear particularly unjustified given the remarkable improvement in tax compliance despite challenging economic conditions. The cumulative impact of these amendments extends far beyond tax administration and threatens fundamental aspects of Pakistan’s economic environment. The creation of an unpredictable tax regime with diminished procedural safeguards signals a disregard for legal due process that will inevitably damage Pakistan’s international…