ISLAMABAD: In a bid to address growing concerns from the business community and taxpayers, Minister of State for Finance Bilal Azhar Kayani has clarified the Federal Board of Revenue’s (FBR) arrest powers regarding tax fraud cases.

Speaking during a session of the National Assembly, Kayani stated that arrests will only be made in specific cases of proven tax fraud, and only after the approval of a three-member committee of the FBR Board.

He emphasized that no arrests will be carried out at the inquiry stage, ensuring that individuals are not harassed during the early phases of investigation. “FBR already had the authority to arrest in tax fraud cases, but under the new directives, these powers have been structured with stronger checks and balances,” he noted.

According to the minister, the new mechanism is part of Prime Minister Shehbaz Sharif’s special instructions to safeguard citizen rights and promote accountability without intimidation.

“These measures will ensure transparency, protect legitimate taxpayers, and support a business-friendly environment,” he added.

Conclusion:

The revised approach reflects the government’s intent to strike a balance between enforcement and economic confidence. By limiting arrest powers to exceptional fraud cases and requiring board-level scrutiny, the move signals a shift toward fairness, transparency, and legal integrity in Pakistan’s tax regime.