STGO issuance welcomed: Businessmen laud curbs on FBR arrest powers

ISLAMABAD: Business community lauded government’s move to restrict Federal Board of Revenue (FBR) arrest powers and welcomed the issuance of the Sales Tax General Order (STGO), which outlines a detailed procedure for investigation prior to the arrest of any businessman.

The FBR has issued a detailed procedure of investigation before any arrest of businessmen under sales tax general order (STGO) number 2 of 2025 on Wednesday.

Economic Policy & Business Development (EPBD) Chairman Gohar Ejaz gave full credit to Field Marshal 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.

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.

“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 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, Ejaz added.

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.

Copyright Business Recorder, 2025