Kati President Concern Over Court Ruling On Tax Powers

The recent developments surrounding the Federal Board of Revenue (FBR) and its newly granted powers have sparked significant concern among the business community in Pakistan. On February 28, 2026, the Federal Constitutional Court rejected a plea challenging the legality of tax raids conducted without prior judicial approval, allowing tax officials to conduct raids at any time and seize business documents and computers. Muhammad Ikram Rajput, President of the Korangi Association of Trade and Industry (KATI), voiced his apprehension, stating, "These extraordinary and disproportionate powers are a direct intrusion into business autonomy," and warned that such measures could lead to increased market uncertainty and potential corruption. He emphasized that the business sector is already facing rising costs and financial pressures, which could be exacerbated by these new regulations. Rajput called for the establishment of clear standard operating procedures (SOPs) to prevent harassment and ensure that legitimate commercial activities are not unduly pressured (Business Recorder, February 28, 2026).