FBR Powers Focus on Sales Tax Fraud Only

Karachi, July 15, 2025, 05:07 PM PKT — Finance Minister Muhammad Aurangzeb on Monday delivered a forceful defense, asserting that the Federal Board of Revenue (FBR)’s expanded enforcement powers, enacted via recent reforms, target sales tax fraud exclusively, dismissing critics’ claims of income tax overreach during a Karachi press conference. “This is a sales tax fraud issue—no link to income tax,” he declared, justifying amendments empowering the FBR to block high-value transactions (e.g., vehicle/property purchases, mutual funds, premium accounts) by non-filers, seal unregistered premises, confiscate goods, and recover taxes from public entities.

Aurangzeb stressed these powers, already in the original law, now include added safeguards, with Inland Revenue Service officers’ arrest authority enhanced by protections after rigorous National Assembly, Senate Finance Committee, and standing committee reviews, plus input from the Pakistan Bar Council’s vice chairman. He noted six of 10-12 key sections address serious sales tax fraud above Rs50 million, requiring commissioner-level approval and a three-member FBR board. Economic revival calls urged banks to aid privatisation of 24 state-owned enterprises and rehabilitate distressed firms, aligning with Haroon Akhtar’s industrial policy.

He highlighted macroeconomic gains—unlocking stuck dividends and letters of credit—boosting investor confidence, and FBR modernisation via digitisation, inviting Faysal Bank CEO Yousuf Hussain and Communications Minister Abdul Aleem to witness transformation. A simplified tax return form (down from 800 rows to 8 screens) targets salaried filers, with plans for small traders and SMEs, backed by Rs75 billion in sales tax refunds. Aurangzeb warned against short-term growth surges, advocating deregulation (e.g., rice, maize) and private sector-led sustainability. Web context shows reform debates, while posts found on X reflect skepticism—some back efficiency, others doubt trust. Critically, the narrative of “targeted enforcement” may mask overreach risks—web data hints at past disputes, and X sentiment suggests distrust in fair use, pointing to potential backlash.