Jazz CEO Laments ‘Coercive and Unfortunate’ Office Closure by FBR

Jazz CEO Aamir Hafeez Ibrahim in a Twitter thread on Saturday lamented the untoward event where FBR shut down the Jazz head office for alleged non-payment of taxes. Although the Islamabad High Court ordered the office to be de-sealed the very next day, the event has left Jazz highly displeased.

Calling the closure ‘coercive and unfortunate’, Ibrahim provided a rundown of the events explaining what triggered the event and what the sad takeaway of such events is for industry players. “This has to do only with an adverse order passed by the appellate tribunal and is not related to customers – withholding tax, GST,” he wrote.

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“Seizing an office may be an appropriate response for criminals and extortionists,” he said, “but not for a company that has served Pakistan’s core economy for over two and a half decades, having seen several political cycles.” He further said that the overt display of force was disproportionate with the brand loyalty of 64 million Jazz customers.

According to Jazz, FBR had based the Jazz head office closure on a disputed tax demand pertaining to the interpretation of a corporate re-organization undertaken by Jazz in 2017, a matter that is sub-judice in the honorable High Court. The company maintains it is fully cognizant of its tax obligations, having contributed over PKR 369 billion in taxes, license renewals, regulatory dues, and duties during the last 6 years including PKR 47 billion as corporate tax.

Jazz has also been the recipient of multiple highest taxpayer awards by FBR, PRA, and KPRA over the years. With an investment of US$ 9.5 billion since 1994, Jazz is amongst the biggest foreign investors in Pakistan. Despite the challenging business environment during Covid-19, Jazz invested PKR 28.9 billion in 2020 alone.

Aamir Ibrahim also highlighted how, despite huge challenges like Covid lockdowns, Karachi floods, and the Jazz headquarters’ closure, the company continues to serve and connect the country. “Pakistan ranks lowest in terms of Internet readiness in South Asia,” he highlighted. “As someone who works hard to call investors to Pakistan, I find the regulatory environment standing at the opposite end of our national ambitions.”

Jazz feels that the action against an established company that’s driving the country’s long overdue digital transformation on a matter that requires legal discourse has tarnished its corporate reputation and shaken investor confidence in Pakistan. The company seeks an amicable resolution through dialogue to conclude the matter on merit with the right interpretation.

While taking a strong standpoint against the FBR’s action, Jazz CEO also reiterated his company’s commitment to leading Digital Pakistan. “The laws of the country in letter and spirit will continue to be paramount to us. Having said that, we will not be bowed down by the wrong interpretations of the law,” he stressed.