The Federal Board of Revenue (FBR) has repealed a provision that required tax officials to notify defaulters 24 hours before freezing their bank accounts, which tax lawyers described as harassment and a barrier to doing business. Former FBR chairman Shabbar Zaidi made it essential for tax collectors to notify defaulters prior to shutting their accounts, keeping the FBR chairwoman informed.
“I am further directed to state that the instructions referred supra are hereby withdrawn ab-initio in order to implement the law in its true spirit and to re-vest the power vested in the institution of the Commissioners viz-a-viz action under Section 140 of the Income Tax Ordinance, 2001,” Hammad Hussain Jaffri, Secretary Inland Revenue Operations FBR, said in an official notification on Monday.
“As a result, the field formations may utilize the rights conferred on them by SRO 274(1)/2020 dated April 2, 2020 and Section 48 of the Sales Tax Act of 1990 for the recovery of outstanding claims.” “This is issued with the Chairman’s permission, FBR,” the notification stated.
