ISLAMABAD: Prime Minister Shehbaz Sharif has officially taken notice of the Federal Board of Revenue’s (FBR) proposal to grant itself powers to arrest traders allegedly involved in tax fraud. This move has triggered widespread concern among the business community and lawmakers alike.

According to sources within the FBR, a high-level meeting has been convened in Islamabad where the Finance Minister, FBR Chairman, and Law Minister will brief the Prime Minister on the controversial clause included in the upcoming Finance Bill 2025.

The proposal in question suggests giving FBR officials the authority to arrest and imprison individuals for up to 10 years for suspected tax evasion or fraud. This has raised alarms over potential misuse and arbitrary detentions, especially at a time when Pakistan is striving to improve ease of doing business and attract foreign investment.

It is important to note that the Senate Standing Committee on Finance has also expressed opposition to this amendment, labeling it excessive and potentially damaging for Pakistan’s investment climate.

The Prime Minister’s intervention signals a possible review or revision of the proposal in light of growing criticism and the need for more transparent and investor-friendly tax enforcement mechanisms.

Further developments are expected following the outcome of the scheduled meeting.