ISLAMABAD: The Federal Board of Revenue (FBR) has amended Clause 37A of the Sales Tax Act through a new notification, addressing longstanding concerns raised by the business community, ARY News reported.
Under the updated rules, no enforcement action can be taken against any businessman without the explicit approval of the concerned Commissioner. Furthermore, Commissioners themselves are now required to seek prior permission from Inland Revenue members before launching any investigation.
Former caretaker Federal Minister and Chairman of Economic Policy and Business Development (EPBD), Gohar Ejaz, welcomed the issuance of the new Sales Tax General Order (STGO), which provides a structured framework for investigations before any arrests in tax-related cases can take place.
He lauded the move as a major win for Pakistan’s business community, saying the government’s decision to require tax officials to consult with at least two business representatives before initiating probes or arrests in tax fraud matters marks a pivotal shift in protecting taxpayer rights.
Ejaz attributed this policy shift to the efforts of Field Marshal Syed Asim Munir, praising his role in preserving the dignity and honour of the business sector by curbing the FBR’s sweeping powers introduced under the Finance Act 2025.
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He further recalled that this development stemmed from the July 21, 2025, meeting between business leaders and authorities, where senior representatives from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI)—including Dr. Gohar Ejaz, FPCCI President SM Tanveer, and presidents of 18 regional chambers—voiced their concerns.
The government, he added, has taken meaningful steps following the discussions to ensure fair treatment of businesses and roll back excessive authority previously granted to the tax machinery.
Meanwhile, Prime Minister Shehbaz Sharif has instructed the relevant departments to remove bureaucratic bottlenecks and institutional obstacles to ensure lasting implementation of the reforms within the FBR.