FBR in Pakistan has introduced a new rule to make the process of arresting a businessman over tax fraud charges e transparent and fair.
According to Sales Tax General Order No. 2 of 2025, the Member Inland Revenue (IR) Operations at the FBR must now consult two nominated representatives from the business community before approving any investigation that could result in an arrest. This step comes after initial approval is granted at the commissioner level.
The aim of this rule is to ensure that no businessman faces unnecessary or unfair action. By involving business community representatives in the decision-making process, the FBR hopes to create a balanced approach where genuine tax fraud cases are addressed, but honest businesses are protected from harassment.
The representatives who will be consulted will be selected based on strict criteria, including their record of tax compliance, payment history, contribution to exports, and overall importance in their respective regions.
This ensures that the people giving advice during the consultation process are credible, experienced, and familiar with the business environment.
Business groups across the country have welcomed this move, calling it a strong safeguard for the rights of entrepreneurs and traders. They believe it will build trust between the tax authorities and the private sector, as well as encourage voluntary tax compliance.
This new procedure is part of the FBR’s broader efforts to improve transparency, strengthen accountability, and maintain a fair tax system while still cracking down on actual cases of tax fraud.
