Prime Minister Takes Notice of Proposal to Arrest Tax Fraudulent Traders

Islamabad: Prime Minister Shehbaz Sharif has taken notice of the proposal to arrest traders involved in tax fraud following a review meeting on Federal Board of Revenue (FBR) matters. The meeting, chaired by the Prime Minister, discussed the issue of the arrest of tax defaulters as reported by the media.
During the meeting, Prime Minister Shehbaz was briefed that the authority to arrest sales tax defaulters has been part of the law since the 1990s. However, with the consideration of rulings from higher courts, amendments are being made to further streamline the relevant clauses.
The Prime Minister instructed that these provisions should not be used to harass the business community or taxpayers. He emphasized that regular taxpayers should not be subjected to harassment under any circumstances. He also reiterated that the respect and dignity of the business community and investors are paramount, and unjust harassment will not be tolerated.
In light of the ongoing discussions, the Prime Minister ordered the formation of a special committee to review the matter. He directed that the authority to arrest should be restricted to cases involving tax defaulters of significant scale.
Prime Minister Shehbaz also called for the establishment of an external review mechanism and effective checks and balances for arrests under tax laws. He stressed the importance of adding clauses in the Finance Act to protect against the misuse of these laws.
The Prime Minister further directed that consultations be held with all allied parties in Parliament on this issue.
The meeting was attended by federal ministers for defense, law, trade, economic affairs, information and broadcasting, the Minister of State for Railways, the Chairman of FBR, economic experts, and senior government officials.