Serious concern over Finance Bill 2025 amendments expressed

ISLAMABAD: All Pakistan Fruit & Vegetable Exporters Importers and Merchants Association has expressed serious concern over Finance Bill 2025 amendments, empowering Officer of Inland Revenue to arrest any person including Chief Executive Officer, Directors, or Chief Finance Officer for alleged involvement in tax fraud.

According to a letter of the association to Finance Minister, the tax officer may believe that delay in arrest may enable the accused to evade the process of law or circumstance exist in which obtain prior approval of the Commissioner Inland Revenue is not practicable, involved in tax fraud, surfaced during an investigation and supported by evidence.

This provision is deeply troubling as it allows arbitrary and unchecked arrest powers, without any judicial oversight, due process of law or defined evidentiary standards. The members of our association also stressed the need for increasing momentum of confidence level and facilities to be availed in easy way for onward boost the exports and bring the foreign exchange as well achieve the revenue target.

The taxpayers/members of our association raised grave legal and practical concerns regarding implementing this proposed provision of law due to the following reasons: The power to arrest without prior approval, based on subjective belief, undermines due process. It opens the door to potential misuse or abuse of power. Granting arrest powers without checks can create fear among corporate leadership, including CEOs, CFOs, and directors. This may discourage investment and negatively impact economic activity.

The threshold of “supported by evidence” is vague—what qualifies as sufficient evidence? No clear procedural safeguards to prevent arbitrary detention or ensure judicial oversight. This may conflict with fundamental rights such as the right to liberty, fair trial, and protection from arbitrary arrest. It also violates the due process of law standards under national and international law.

It is submitted that the Courts of Pakistan have also consistently ruled out in favour of safeguarding the liberty of citizens, including taxpayers, and ensuring that tax authorities do not overstep their legal mandate.

It is further emphasized that the Constitution of Islamic Republic of Pakistan also provide that any attempt to arrest a taxpayer without observing due course of law— is a violation of Article 4 and Article 10-A of the Constitution of Pakistan. Such actions are legally untenable and liable to be struck down by the courts.

In light of the above said, it is strongly urged that the proposed Section37AA be deleted entirely, without further argument or justification. The inclusion of such a provision is not only excessive but unnecessary, given that adequate legal mechanisms already exist to deal with tax fraud under due process. We sincerely hope that this concern will be given due consideration in the interest of fairness, justice, and economic stability, it added.

Copyright Business Recorder, 2025