The Federal Board of Revenue (FBR) has released the list of designated representatives from the business community who must be consulted at the initiation of any investigation before a trader can be arrested on charges of tax fraud.
Since the announcement of the Federal Budget 2025-26, no FIR has been lodged against any trader on charges of tax fraud.
In this regard, the FBR issued a formal notification on Thursday, stating that in the context of Sales Tax General Order No. 02 of 2025, representatives from the business community have been designated for consultation.
According to the notification, the FBR has included representatives from various trade bodies in the list, including the Pakistan Business Council, Lahore Chamber of Commerce & Industry (LCCI), Federation of Pakistan Chambers of Commerce & Industry (FPCCI), All Pakistan Textile Mills Association (APTMA), and the Chambers of Commerce from Multan, Quetta, Hyderabad, and Sarhad.
The FBR states that without this consultative process, the initiation of any investigation or arrest of a trader will not be permitted without the approval of the Member (Inland Revenue Operations) of the FBR.
It is noted that the FBR had previously issued a notification detailing the pre-arrest investigation procedure for traders under Sales Tax General Order No. 2 of 2025.
As per the notification, a Pre-Arrest Committee has been established under Section 37A, which will include two representatives from the business community of the concerned zone. The purpose of this measure is to prevent any unnecessary pressure or action against traders, as their representatives will be part of the committee.
According to the previously issued Order, no inquiry can be initiated without the prior approval of the Commissioner. After the inquiry is complete, the Commissioner will not authorize the commencement of an investigation until formal approval is obtained from the Member (Inland Revenue Operations).
Furthermore, before seeking approval from the Member (Inland Revenue Operations), it is mandatory for the Commissioner to consult with two individuals from the business representatives designated by the FBR.
The FBR states that trade organizations will send the names of two representatives each—who are tax-compliant and prominent taxpayers—to the Member (Inland Revenue Operations) at the FBR Headquarters.
Subsequently, the Member Inland Revenue will select two representatives for each region from these names, who will be designated based on their tax records, export history, and compliance track record with the relevant organizations.
