ISLAMABAD: The Pakistani government has proposed in the Finance Bill 2021-22 granting “fundamental and sweeping powers” to the Federal Board of Revenue (FBR), including to arrest tax evaders and those concealing their income, Pakistani media reported on Wednesday.
Pakistan on June 11 presented what has been called a “pro-growth” budget with an expected total outlay of Rs8.5 trillion and a revenue collection target set at Rs5.8 trillion — which is lower than the Rs6 trillion target set by the IMF. Pakistan is also expected to achieve Rs4.7 trillion in revenue collection this year.
According to measures proposed in the Finance Bill, now all officers of Inland Revenue (IR), starting from the assistant commissioner level, can arrest a taxpayer accused of a tax offense without a complaint being filed before a special judge.
“Thus, a concept of pre-trial arrest and detention is being introduced to the income tax law for the first time,” The News reported. “The only requirement for arresting a taxpayer is that the officer effecting the arrest ‘believes’ that the taxpayer has committed an offense that can be prosecuted under the law. Even the prior filing of a complaint before the special judge will not be required.”
“The question arises why the FBR proposed more sweeping powers when the Income Tax Ordinance (ITO) 2001 already has provisions for prosecution,” The News said, reporting that the Senate Standing Committee on Finance had rejected the proposed powers for FBR officers.
“Opposition members termed the proposed powers of the FBR officers as ‘draconian’ and made it clear that they would not grant approval in parliament,” the newspaper said.
In a meeting held on Tuesday, the FBR briefed Finance Minister Shaukat Tarin on its strategy to broaden the tax net.
“Minster for Finance and Revenue directed to remove all hurdles in bringing the identified potential taxpayers into tax net,” an FBR tweet said:
Minister for Finance & Revenue Shaukat Fayaz Ahmed Tarin visited FBR Headquarters today and held a meeting with FBR officers. 1/14 @GovtofPakistan @FinMinistryPak @MoIB_Official pic.twitter.com/VVzDveTPfR
— FBR (@FBRSpokesperson) June 15, 2021
