Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Aman Paracha, commented on the establishment of Grievance Redressal Committees formed to investigate complaints of tax fraud before arresting registered individuals under the sales tax regime. He stated that FPCCI officials had expressed concerns to the federal government regarding the discretionary powers granted to FBR officers and the arrest of businesspersons in the Federal Budget 2025–2026. As a result, new notifications have now been issued by the Federal Board of Revenue (FBR).
According to these notifications, CEOs and directors of companies can no longer be arrested solely on suspicion. The newly formed committees will first review the complaints, and only after their recommendations will any legal action be taken. Aman Paracha emphasized that all matters should be handled transparently through these committees to maintain the trust of the business community.
He said that the business community across the country had expressed serious concerns about several anti-business clauses in the federal budget and had communicated these concerns to Prime Minister Shehbaz Sharif, Field Marshal General Asim Munir, and other key federal ministers, requesting that they be resolved in consultation with business representatives.
Aman Paracha clarified that under Section 37A of the Sales Tax Act, the FBR previously had the authority to arrest CEOs and directors on mere suspicion. However, due to a successful advocacy campaign, this section has now been amended. Section 40B, which was also a source of widespread complaints, will now also fall under the jurisdiction of the grievance redressal committees, which will examine the complaints and recommend the next steps.
He thanked Prime Minister Shehbaz Sharif, Field Marshal General Asim Munir, and other federal leaders for taking the concerns seriously and taking appropriate action.
Aman Paracha stated that national interest is always their top priority. He added that while they want the number of taxpayers and the government’s revenue to increase, this can only happen if the harassment of the business community stops. Instead of continuously burdening existing taxpayers, efforts should be made to bring new taxpayers into the net. People should willingly enter the tax net and pay their due share of taxes.
