ISLAMABAD: The National Assembly Standing Committee on Finance on Friday expressed serious concern over remarks by a senior Federal Board of Revenue (FBR) member, who referred to committee members as “non-expert legislators”, and warned him against making such comments in future.
The incident occurred during a meeting of the committee held at Parliament House while reviewing prosecution and penalty-related provisions proposed in the Finance Bill 2026.
The committee examined proposed amendments regarding penalties under tax laws, particularly provisions related to concealed income and assets. Members expressed concern that certain proposed penalties could disproportionately impact compliant and middle-income taxpayers, stressing the need for a balanced and risk-based enforcement framework.
MNA Sharmila Faruqui informed the committee that she and her mother had faced difficulties due to the misuse of Section 111 of the Income Tax Ordinance, 2001, relating to unexplained income and assets.
“Section 111 is very dangerous, and I have suffered a lot due to its misuse by the tax department,” she said.
She said a false concealment case was registered against her mother over allegedly undeclared immovable property in Dubai. She added that a notice of Rs40 million was issued under Section 111 of the Income Tax Ordinance.
According to Sharmila Faruqui, the tax department had no evidence against her mother and issued the notice due to a duplication of names, as another woman had the same name.
The Director General Tax Policy Unit intervened, stating that it was the responsibility of the tax department to prove concealment of income or assets against a taxpayer.
FBR Senior Member emotionally said that all those tax officers doing wrong things should be hanged.
Responding to the discussion, Sharmila Faruqui said there was no need to make the matter personal, adding that the committee was working to assist the FBR.
When committee members insisted on incorporating safeguards and appropriate legal language into the proposed amendments, the FBR member referred to them as “non-experts”.
Sharmila Faruqui responded that lawmakers might not be tax experts, but they were legislators.
Committee Chairman Syed Naveed Qamar warned the FBR member that he had made such remarks twice and advised him not to repeat them.
The FBR member later apologised to the committee, saying he had no intention of hurting the feelings of parliamentarians.
Copyright Business Recorder, 2026