Review of arrest cases: FBR sets up 2 ‘grievance redressal committees’

ISLAMABAD: The Federal Board of Revenue (FBR) has constituted two ‘Grievance Redressal Committees’ to review cases of arrests of persons involved in sales tax frauds and also deputation of Inland Revenue officials at factories/manufacturing premises to monitor production/clearances.

In this regard, the FBR has issued two notifications on Saturday.

The Grievance Redressal Committee to review cases after arrest has nothing to do with the high-level FBR committee to be constituted for giving prior approval before arrest on allegations of tax fraud, a tax expert explained.

The FBR has constituted a Grievance Redressal Committee to address complaints and review actions taken under sub-sections (8) and (9) of section 37A of the Sales Tax Act, 1990, particularly in cases involving arrests on charges of tax fraud. The section deals with the power to inquire and investigate offences warranting prosecution under Sales Tax Act and arrest of a person.

Grievance Redressal Committee for cases under section 40B of the Sales Tax Act, 1990 has also been constituted.

According to a notification issued by the FBR, the committee will serve as a forum for registered persons to raise concerns regarding arrests made under the relevant section of the law. The formation aims to ensure fair procedures and prevent possible misuse of powers of prosecution and arrests of taxpayers.

Arrests for tax fraud: major changes made in sales tax law thru Finance Bill

The first committee will comprise of members including Member IR Operations, FBR; Member Legal IR, FBR; President/Nominee, FPCCI and President/Nominee, Chamber of Commerce corresponding to the jurisdiction where a person was arrested within the last 15 days.

Additionally, the Secretary (ST-Operations), IR will serve as the Secretary to the Committee, without holding voting rights.

The committee is empowered to co-opt business representatives on a need basis and will convene at least once every fortnight. These meetings will focus on grievances submitted by registered taxpayers regarding arrests made under Section 37A.

The decision of the committee will be communicated to the Chairman FBR, who is authorized to take appropriate action if any maladministration is identified by the committee.

The FBR has also directed relevant members and offices to nominate representatives for the committee promptly.

Through another notification, the FBR has constituted a committee for redressal of grievances and for regular review of actions taken by the field formations under section 40B of the Sales Tax Act, 1990, and will comprise of the following members: Member IR Operations, FBR Member Legal IR, FBR; President/Nominee, FPCCI; President/Nominee, Chamber of Commerce and Industry, Karachi and President/Nominee, Chamber of Commerce and Industry, Lahore.

Chief (ST-Operations) IR shall act as Secretary to the Committee. 3. The committee may co-opt other business/trade representatives on need basis and shall meet once in a fortnight to review and discuss any grievance brought by a registered person regarding actions taken under section 40B of the Sales Tax Act, 1990. The representative sector association for the relevant sector shall be given the opportunity to appear before this committee to present its case. 4. The scope of review of the committee shall be to oversee fair and transparent application of law.

Recommendations of the Committee shall be conveyed to the Chairman, FBR, who may take action against the officers/officials in case any maladministration is reported by the committee, the FBR added.

Copyright Business Recorder, 2025