FBR has introduced a new rule that changes how investigations leading to the arrest of businessmen accused of tax fraud will be approved.
Under Sales Tax General Order No. 2 of 2025, the FBR can no longer approve such investigations without first consulting two representatives from the business community.
The process will begin with the Commissioner, who must first review the case and decide if it should move forward. Before requesting final clearance, the Commissioner is required to consult two officially nominated business representatives.
Only after these consultations can the case be sent to the Member (Inland Revenue Operations) for final approval. The FBR will publish the names of the selected business representatives on its official web portal so that the process remains transparent.
The goal of this change is to ensure fairness and prevent unnecessary or unjust actions against businesspeople. By involving respected members of the business community in the decision-making process, the FBR aims to strike a balance between tackling genuine cases of tax fraud and protecting honest businesses from undue pressure.
This step is being seen as a safeguard for entrepreneurs and traders, giving them more confidence in the tax investigation process. It also reflects the FBR’s effort to build better relations with the private sector while still maintaining its authority to act against actual fraud.
By adding this consultation requirement, the government hopes to encourage greater trust, voluntary tax compliance, and a more cooperative approach between tax officials and the business community.
