Islamabad – The Federal Board of Revenue (FBR) has finalized a comprehensive procedure for the arrest of businessmen involved in sales tax fraud cases, following the formal nomination of representatives from leading trade organizations across Pakistan.
According to an official notification issued on Thursday, the FBR has appointed nominees from trade bodies to establish regional committees responsible for approving investigations and arrests under Section 37A of the Sales Tax Act, 1990.
Earlier, the FBR issued Sales Tax General Order (STGO) No. 02 on August 6, 2025, outlining the process of publishing a list of business community representatives on the FBR’s official portal. Under the approved procedure, before seeking authorization from the Member Inland Revenue (Operations), the concerned Commissioner must first consult two representatives from the business community.
In line with the STGO, the Member Inland Revenue (Operations) will nominate two individuals from each region for consultation, chosen from names submitted by trade organizations. The selection will be based on income tax contributions, export performance, and compliance history for the latest tax year. Furthermore, no more than one nominee can be selected from a single trade organization within a region.
As part of its nationwide crackdown on sales tax fraud, the FBR has established seven regional committees to ensure transparency and accountability. These committees, comprising trade representatives, will review charge sheets prepared by FBR field formations and provide approval before arrests are made in sales tax fraud cases.
The move reflects FBR’s commitment to strengthening its enforcement mechanisms while ensuring industry consultation and due process in tax fraud investigations.