PM Shehbaz takes notice of arrests of tax defaulters

ISLAMABAD: Prime Minister Shehbaz Sharif chaired a high-level review meeting on Federal Board of Revenue (FBR) affairs, during which he took immediate notice of media reports concerning the arrests of tax defaulters.

The Prime Minister was briefed that the legal provision for arresting sales tax defaulters has been part of the law since the 1990s. However, in view of recent superior court rulings, according to PTV World, amendments are currently being made to refine and better align these provisions with legal and constitutional safeguards.

After thoroughly reviewing the matter, the Prime Minister issued firm directives that no amendments or legal powers should be misused to harass legitimate taxpayers or members of the business community.

“It is completely unacceptable to harass those who pay taxes regularly,” Prime Minister Shehbaz Sharif said. “The respect and dignity of the business community and investors are of utmost importance to us, and any form of unwarranted harassment will not be tolerated.”

To address the issue comprehensively, the Prime Minister directed the formation of a special committee.

He also instructed that the authority to arrest should be strictly limited to cases involving exceptionally large-scale tax defaulters.

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Furthermore, the Prime Minister ordered the development of an effective system of external review and checks and balances regarding arrests under tax laws.

He also directed that protective clauses be included in the Finance Act to prevent misuse of legal provisions.

Shehbaz Sharif emphasised that thorough consultation must be ensured with all allied parties in Parliament before finalizing any legislative changes related to this matter.

The meeting was attended by federal ministers for Defence, Law, Commerce, Economic Affairs, Information and Broadcasting, the Minister of State for Railways, Chairman FBR, senior economic experts, and other top government officials.