Govt Restricts FBR Powers Boosts Business Safeguards in Tax Reforms
Govt Clamps Down on Arbitrary Tax Actions, Adds Business-Friendly Safeguards
In a major relief to the business community, the Federal Board of Revenue (FBR) has issued a new directive that significantly curtails the unchecked powers of tax officials when dealing with businesspersons.
According to the official notification, tax officers can no longer take action against any businessman without first getting approval from the Commissioner. Additionally, even Commissioners must now seek permission from senior Inland Revenue members before launching any investigation, thanks to recent amendments to FBR procedures.
The move has been widely welcomed by the business community. Former federal minister and Chairman of the Economic Policy and Business Development Committee (EPBD), Gohar Ejaz, lauded the issuance of the Sales Tax General Order (STGO), calling it a “much-needed step” to protect businesses from misuse of power.
He praised the government’s decision to mandate consultation with at least two business representatives before initiating any tax fraud investigation that could lead to arrest. “This is a huge win for taxpayers across Pakistan,” Gohar said.
Ejaz also credited Chief of Army Staff, Field Marshal Syed Asim Munir, for playing a vital role in shielding business leaders from harsh clauses introduced under the Finance Act 2025. “As promised during the July 21st meeting with key business figures, Field Marshal Munir upheld the dignity of the business sector,” he said. That meeting was attended by FPCCI head Dr. Gohar Ejaz, President SM Tanveer, and presidents of 18 regional chambers, including those from Karachi, Lahore, Faisalabad, Islamabad, and Sialkot.
Meanwhile, Prime Minister Shehbaz Sharif has also thrown his weight behind the reforms. Chairing a high-level meeting on FBR affairs, the PM directed authorities to cut red tape and remove bureaucratic hurdles to ensure permanent reform in the taxation system.
He expressed satisfaction over the rising tax-to-GDP ratio, attributing it to the ongoing digital and structural transformations in the FBR. “The federal government stands fully behind these reform efforts,” he said, emphasizing consistent and nationwide enforcement—especially in customs clearance procedures.
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