FBR officials: OICCI says concerned at proposed arrest powers

KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) has expressed serious concerns over the proposed powers of arrest granted to Federal Board of Revenue (FBR) officials under the Finance Bill 2025-26, warning that the move has significantly undermined investor confidence, particularly among foreign stakeholders.

In a letter addressed to Finance Minister Muhammad Aurangzeb, the OICCI expressed deep concern over proposed amendments in the Finance Bill 2025-26, relating to Section 37 AA of the Sales Tax Act, 1990, seeking to extend wide powers to the Inland Revenue officials relating to arrest/prosecution without necessary check and balance.

The chamber criticized the provision for granting sweeping powers of arrest and prosecution to Inland Revenue officials without adequate checks and balances, which it believes could lead to misuse and harassment of businesses.

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“Local business leadership has also reacted very negatively to the proposed measure; however, this move has dented the confidence of the leadership of our 200-plus members belonging to over 30 countries,” Abdul Aleem Chief Executive and Secretary General OICCI said in the letter.

He said that such arbitrary measures, without thorough consultation with key stakeholders or due consideration of its potential impact on the business environment, add to the negative perception of the country as a business-friendly destination for local and foreign investors.

OICCI has also appreciated the timely intervention from Prime Minister, Mian Shehbaz Sharif, Finance Minister Muhammad Aurangzeb and senior members of Parliament in ensuring that such far-reaching and potentially disruptive proposals are not enacted without rigorous oversight and due diligence.

He said there should be any consideration to retain this clause for exceptional circumstances, the OICCI looks forward to reviewing the specific safeguards proposed to prevent misuse.

In the Chamber’s view, at a minimum, explicit prior approval from the FBR Chairman should be mandated in any such extraordinary case involving the arrest of an alleged defaulter.

The OICCI further emphasized its trust that the government leadership and relevant authorities including the FBR fully recognize the potential reputational damage that such unnecessary and excessive measures could cause to Pakistan’s image as a welcoming and dependable destination for both foreign and domestic investors.

The OICCI has also conveyed its concerns to FBR Chairman Rashid Mahmood Langrial and urged a reconsideration of the proposed clause.

Copyright Business Recorder, 2025