Prime Minister Shehbaz Sharif has set up a high-powered committee to address concerns raised about proposed changes in the Finance Bill 2025. The initiative comes after various stakeholders, including businesses and tax experts, voiced reservations over taxation clauses and enforcement powers.
The committee includes Finance Minister Muhammad Aurangzeb as its head, with the Minister for Law, Minister for Economic Affairs, and Chairman FBR among its key members. It will reassess the controversial amendments and submit its detailed recommendations to the Prime Minister in the coming days.
Chairman FBR explained that recent proposals aimed to modernize tax enforcement but sparked concern over arrest powers. He clarified that arrests under tax fraud charges will now require written approval from the Inland Revenue Commissioner. In case of any suspicion of misuse, the matter will be reviewed by the Chief Commissioner.
He further added that the amendments are not meant to target honest taxpayers. Instead, they are designed to crack down on chronic tax evasion and financial fraud while safeguarding legitimate business activity.
The committee is also tasked with recommending reforms to prevent the misuse of authority by tax officers. It will explore measures to make the tax system more fair, balanced, and transparent in time for the passage of the budget.