Islamabad, 16 June 2025: FBR Arrest Powers, The government’s proposal to expand the Federal Board of Revenue’s authority to detain individuals over alleged tax fraud has stirred strong concerns within the business community, prompting Prime Minister Shehbaz Sharif to intervene.
According to official sources, the Prime Minister chaired a high-level meeting with the country’s economic team to review the matter.
The discussion reportedly focused on a contentious clause in the Finance Bill that recommends granting FBR arrest powers to senior commissioners for apprehending traders involved in tax evasion or fraudulent filings.
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The proposal, originally floated by FBR officials, was framed as a necessary measure to curb financial misconduct. However, it has drawn a sharp response from trade bodies across the country, many of whom have termed the potential move as coercive and damaging to the business climate.
Business associations, already voicing dissatisfaction with recent fiscal policies, have expressed serious reservations over what they perceive as an excessive and unilateral step.
Some stakeholders have warned that granting FBR arrest powers without adequate checks and balances could erode trust between the state and the trading sector.
In light of mounting pressure from industry leaders and political allies, the Prime Minister has reportedly asked for a detailed briefing on the rationale and implications of the proposed measure.
The aim, sources said, is to ensure that future enforcement mechanisms strike the right balance between tax compliance and commercial stability.
READ MORE: Govt Empowers FBR With Harsh Tax Laws for Businesses
The Prime Minister’s office is expected to issue further clarification on the matter following internal consultations.
The debate over FBR arrest powers has now turned into a broader conversation about accountability and enforcement in Pakistan’s taxation framework one that may shape the course of the ongoing budget deliberations.
