FBR shares important update for business community

ISLAMABAD: The Federal Board of Revenue (FBR) has issued a notification amending Clause 37A of the Sales Tax Act, following demands from the business community, ARY News reported.

According to the notification, no action can be taken against any businessman without the prior approval of the Commissioner.

Additionally, Commissioners cannot initiate investigations without the consent of Inland Revenue members as per the new amendments.

Former caretaker Federal Minister Gohar Ejaz and Economic Policy and Business Development (EPBD) Chairman Gohar Ejaz on Thursday welcomed the issuance of the Sales Tax General Order (STGO) by the Federal Board of Revenue (FBR), which outlines a detailed procedure for investigation prior to the arrest of any businessman.

Gohar Ejaz termed the government’s decision of making it mandatory for tax officials to consult at least two representatives of the business community before initiating investigations that could lead to arrests in tax fraud cases as a victory for taxpayers of the country.

He also gave credit to Field Marshal Syed Asim Munir for safeguarding the respect and honour of the business community from the draconian powers granted to the Federal Board of Revenue (FBR) in the Finance Act 2025.

“As announced in the meeting on July 21, 2025 with business leaders, Field Marshal Asim Munir has safeguarded the respect and honour of the business community from the draconian powers granted to the FBR in the Finance Act 2025, following a presentation by the leadership of Federation of Pakistan Chamber of Commerce and Industry (FPCCI) Dr. Gohar Ejaz, SM Tanveer, the President of FPCCI, and the presidents of 18 chambers, including Karachi, Lahore, Quetta, Sarhad, Faisalabad, Islamabad, Rawalpindi, Rahim Yar Khan, and Sialkot,” a press release quoted Gohar Ejaz as saying.

It is worth mentioning here that Prime Minister (PM) Shehbaz Sharif directed the relevant authorities to eliminate red tape and institutional hurdles to ensure the permanent implementation of reforms in Federal Board of Revenue (FBR).

Chairing a meeting regarding matters related to FBR, the prime minister expressed satisfaction over the increase in the tax-to-GDP ratio as a result of the reforms introduced by the federal government in the FBR.

“I, along with the federal government, will fully support and endorse the reform initiatives undertaken by the authorities”, the prime minister said stressing to ensure uniform and effective implementation of revolutionary customs clearance reforms across the country”.