Business chambers get say in tax fraud probes under FBR’s revised policy 

ISLAMABAD: The Federal Board of Revenue (FBR) has issued a list of nominated representatives from the business community who will be consulted before any investigation is launched to arrest a businessman on charges of tax fraud.

The move, formalised through a notification issued on Thursday, follows the FBR’s recent Sales Tax General Order (STGO) No. 02 of 2025. It aims to ensure transparency and prevent unnecessary harassment of taxpayers. Notably, since the announcement of the federal budget for 2025–26, no first information report (FIR) has been registered against any businessman for alleged tax fraud. 

Consultation made mandatory 

According to the new procedure, no investigation against a businessman can begin without first consulting the nominated business representatives and obtaining approval from the FBR’s Member Inland Revenue (Operations). The consultation is now a mandatory step before any inquiry or arrest can be approved under section 37A of the Sales Tax Act, 1990. 

The list of business representatives includes members from key trade and industry bodies such as the Pakistan Business Council, Lahore Chamber of Commerce and Industry (LCCI), Federation of Pakistan Chambers of Commerce and Industry (FPCCI), All Pakistan Textile Mills Association (APTMA), and chambers of commerce from Multan, Quetta, Hyderabad, and Sarhad. 

Safeguard for business community 

The FBR said that each regional pre-arrest committee would include two representatives from the business community, nominated based on their tax compliance, export performance, and contribution to the economy. This measure, officials said, would serve as a safeguard against undue pressure or misuse of authority during tax investigations. 

Under the procedure, the Commissioner must seek prior approval for any inquiry, and further investigation can only proceed after obtaining consent from the Member Inland Revenue (Operations) following consultation with the designated representatives. 

The FBR added that the names of all nominated representatives will soon be available on its official web portal.