FBR Limits Tax Investigations Against Traders, Requires Input from Business Community
In an effort to rebuild trust with the business sector, the Federal Board of Revenue (FBR) has introduced a new system that tightens oversight on tax investigations against traders. Under a recent amendment to Section 37A of the Finance Act, tax commissioners must now obtain prior approval from Inland Revenue authorities before launching any inquiry.
Additionally, the FBR has made it mandatory to consult major business associations — including FPCCI, APTMA, various Chambers of Commerce, the Overseas Investors Chamber, and the Pakistan Business Council — before initiating any tax probe.
To enhance transparency, a fresh Sales Tax General Order has also been issued.
Former caretaker minister Gohar Ejaz welcomed the development, crediting Army Chief General Asim Munir for addressing the traders’ concerns and halting what he termed the FBR’s misuse of authority. Ejaz noted that this amendment came after repeated requests from business leaders, adding that no trader can now be arrested without prior consultation. He also mentioned that 18 chambers of commerce had previously taken their grievances directly to the army chief.
