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ISLAMABAD, Aug 7 (APP):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.
According to the STGO, the Board has directed that the following procedure shall be followed before initiating investigation leading to action under sub-section (8) and (9) of section 37A of the Sales Tax Act, 1990.
“(a) Inquiry shall not be initiated unless approval from the Commissioner has been obtained. (b) After conclusion of inquiry, the Commissioner shall not give approval to initiate investigation unless he has obtained approval from the Member (Inland Revenue Operations) of the Board. Before seeking approval of the Member (Inland Revenue Operations), it is binding upon the Commissioner to make consultation with two representatives of the business community from amongst such representatives as notified by the Board. (c) Board shall notify a list of representatives of business community on FBR’s web portal.”