Karachi, October 24, 2025 – In a major development shaking up the business community, the Federal Board of Revenue (FBR) has announced that it will consult key representatives from Pakistan’s top trade bodies — the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the Karachi Chamber of Commerce and Industry (KCCI) — before moving ahead with sales tax fraud investigations in the Karachi region.
Under Section 37A of the Sales Tax Act, 1990, the FBR is mandated to engage with trade organizations prior to launching probes or making arrests of businessmen involved in alleged tax fraud cases.
According to the latest FBR notification, senior officials including Squib Fayyaz Magoon, Senior Vice President of FPCCI, and Abu Bakar Siddique Ahmed Shamsi, Managing Committee Member of KCCI, have been nominated to represent the business community in these high-stakes consultations. Their input will be sought before the FBR takes any harsh enforcement action against suspected individuals in Karachi.
Just a day earlier, the FBR finalized a comprehensive framework for the arrest of tax evaders, appointing representatives from key chambers across Pakistan. The revenue body has also constituted seven regional committees to ensure transparency and accountability in all tax fraud investigations.
The move follows the issuance of Sales Tax General Order (STGO) No. 02, which mandates that no businessman can be arrested without prior consultation with trade representatives — a step seen as a balance between revenue enforcement and business community protection.
Analysts say the FBR’s latest decision signals a serious crackdown on sales tax fraud while maintaining dialogue with leading trade organizations to avoid industrial backlash.