ISLAMABAD – Prime Minister Shehbaz Sharif on Monday took notice of a proposal included in the federal budget that would grant the Federal Board of Revenue (FBR) the authority to arrest traders involved in tax fraud.
The FBR sources said that the prime minister summoned a high-level meeting to review the proposal.
The meeting will be attended by Finance Minister Muhammad Aurangzeb, FBR Chairman Amjad Zubair Tiwana, and Law Minister Azam Nazeer Tarar.
The Finance Bill 2024-25 includes a clause proposing strict action against traders found guilty of tax fraud, including arrest and imprisonment for up to 10 years. The proposal is aimed at curbing widespread tax evasion and enhancing revenue collection.
However, the proposal has sparked concern among business circles, who fear that the enforcement powers may be misused and lead to undue harassment of traders.
The government officials stated that the purpose of the meeting is to carefully examine the implications of the proposal and determine whether such a measure is necessary and legally sound.
The PM’s intervention suggests the government is open to consultation before finalizing the Finance Bill. A decision on the proposal is expected ahead of the bill’s approval by Parliament later this month.
