LAHORE: The Federal Board of Revenue (FBR) has finalized a detailed procedure for arresting businessmen involved in sales tax fraud, incorporating formal input from leading trade bodies across the country.
According to an official notification, the FBR has appointed representatives from various trade organizations to form regional committees that will oversee investigations and approve arrests under Section 37A of the Sales Tax Act, 1990.
This development follows the issuance of Sales Tax General Order (STGO) No. 02 on August 6, 2025, which outlined the procedure for publishing a list of trade representatives on the FBR portal. Under the new mechanism, before seeking authorization from the Member Inland Revenue (Operations), the concerned Commissioner must first consult two business community representatives.
The Member Inland Revenue (Operations) will nominate two individuals from each region based on recommendations from trade bodies.
Selection criteria include income tax contribution, export performance, and compliance history, with no more than one nominee allowed per organization.
To ensure transparency, the FBR has also established seven regional committees comprising trade representatives.
These committees will review charge sheets prepared by field formations and provide prior approval before any arrests are made.
The initiative aims to enhance accountability in tax enforcement while maintaining fairness and consultation with the business community in tackling sales tax fraud.
