Prime Minister Shehbaz Sharif has introduced six strict conditions for arresting individuals in tax fraud cases, aiming to stop the misuse of arrest powers by Federal Board of Revenue (FBR) officers. The move comes after growing concerns from both lawmakers and the business community about harassment and unfair treatment under tax laws.
During a high-level meeting held to review FBR matters, the prime minister stressed that no taxpayer or businessperson should be mistreated. He directed that arrests must only take place under specific conditions and with proper oversight.
Under the new guidelines, arrests in tax fraud cases can only occur if:
- The person attempts to escape or flee.
- The individual tampers with important evidence.
- At least three official summons have been ignored without valid reason.
- The amount of tax fraud crosses a specified legal threshold.
- Executive-level arrests (CEOs, CFOs, Directors) involve fraud over Rs50 million.
- Approval is granted by a special FBR board, which includes a private sector representative (likely from the chamber of commerce).
PM Shehbaz also ordered the creation of a special committee to review FBR’s enforcement powers and introduce checks and balances. He emphasized the importance of respecting the business community and ensuring fair treatment.
The new conditions are expected to be added to the Finance Act 2025 to make tax enforcement more transparent and accountable. The goal is to protect honest taxpayers while strengthening the system against major fraud.
