Prime Minister Shehbaz Sharif has taken notice of the proposal granting arrest powers to the Federal Board of Revenue (FBR) in cases of alleged tax fraud, as outlined in the Finance Bill 2025, following widespread backlash from the business community across the country.
In response, the Prime Minister convened an emergency meeting with his economic team to discuss the matter. The session, chaired by the Prime Minister, was attended by the Finance Minister, Law Minister, and FBR Chairman. During the meeting, Shehbaz Sharif was briefed on the proposal to allow arrests of traders accused of tax fraud and to extend sentences up to 10 years.
It is worth mentioning that the Pakistan Business Council had formally written to the Prime Minister, urging a review of the FBR’s proposed powers.
According to the controversial clause in the Finance Bill, FBR commissioners would be authorized to arrest traders suspected of tax evasion or fraud without a warrant, and the punishment could be extended up to a decade.
