Islamabad: The Government is reassessing the powers granted to the officers of the Federal Income Board (FBR) to stop the alleged tax evaders and add railings to avoid arbitrary arrests after the concerns expressed by businessmen and legislators about the authority of the blanket and its possible misuse.
Prime Minister Shehbaz Sharif on Monday formed a committee to reexamine the matter and recommend strict safeguards to avoid misuse of the powers of fiscal officials.
FBB president Mahmood Langial, said Sunrise that the provisions could be reviewed to demand permission from multiple upper officers before any arrest.
In the financial bill presented last week, the Government proposed amendments to the Sales Tax Law, 1990, to allow FBR officials to investigate tax fraud and make arrests.
According to the proposed amendments, the assistant or the attached commissioners could arrest the Moray taxes after seeking the approval of the commissioner.
Section 37a proposal says: “The official of the internal income, during the investigation, which has reasons to believe on the basis of the evidence that the actions of any person may have caused or attempted to cause fiscal fraud or any other crime that guarantees the prosecution by virtue of this law, it can cause the arrest of said person with the prior approval of the commissioner.”
The disposition caused the business community to be concerned about the possible abuse of power.
The CEO of the Business Council of Pakistan, Ehsan Malik, in a letter to the Minister of Finance, Muhammad Aurengzeb, said that the powers were “draconians” and “will probably be badly used to harass” taxpayers.
But the president of FBR, Rashid Mahmood Langial, told Dawn that the authority to arrest would remain intact.
However, the Committee headed by the Minister of Finance will examine several options to introduce additional safeguards to avoid the misuse of power of power.
According to Mr. Langial, existing laws enhance low -rank officers to present FIR against tax dwellers.
He pointed out that the proposed amendments require the prior approval of the Income Tax Commissioner before an arrest.
The additional safeguards that are considered include a provision for the approval of three senior officers instead of only the commissioner.
According to the president of FBR, this provision would significantly reduce the potential for improper use of powers. In addition, the officers would be empowered to arrest people for a limited set of violations and not for each crime of fraud, Langial explained.
He added that the powers could be exercised in three circumstances: when a Mooring Prosecutor does not appear before the authorities three times, when there is a risk of evidence or when there is the possibility that the suspect can flee from the country.
PM directives
An official announcement issued by Prime Minister’s Secretariat said that Prime Minister Shehbaz formed the committee after a meeting to review the FBR performance.
According to the state news agency, the application, the prime minister realized the media reports and warned that the proposed powers should not be used to harass the business community or taxpayers.
Langrial informed the Prime Minister that the authority to arrest tax delinquents has been integrated into the fiscal law since the 1990s.
However, in the light of the recent decisions of the higher courts, amendments are introduced to further optimize the process.
The prime minister ordered officials to devise an effective external review system with respect to the subject of arrest and arrests should only be carried out in cases where the amount of fraud was “exceptionally high.”
The prime minister said that the provisions for protection against the misuse of these laws must be part of the Finance Law. He asked for consultations with all coalition matches on this subject.
NA committee
On Monday, the National Committee of Finance and Income of the Assembly also caused alarm on the proposed amendments.
The meeting, chaired by MNA Naveed Qamar, also attended Finance Minister Aurangzeb, who assured the members that the matter would be reviewed in accordance with the Prime Minister’s directives.
The Minister of Finance informed the committee that Senator Faooq H. Naik had proposed amendments destined to safeguard against the misuse of powers. He described Mr. Naik’s suggestions as highly appropriate.
The prime minister has been informed about the matter and the committee will be updated on any progress in this matter, said Aurengzeb.
He assured the members that appropriate changes would be introduced after due consultation.
Posted in Dawn, June 17, 2025
