Islamabad, August 7, 2025 – The Federal Board of Revenue (FBR) on Thursday issued procedure for initiating tax fraud investigation under Section 37A of the Sales Tax Act, 1990.
The FBR issued Sales Tax General Order (STGO) No. 2 of 2025 for notifying the procedure.
The FBR directed all field formations of Inland Revenue to follow procedure before imitating investigation leading to action under sub-section (8) and (9) of Section 37 of the Sales Tax Act, 1990.
(a) Inquiry shall not be initiated unless approval from the Commissioner has been obtained;
(b) After conclusion of inquiry, the Commissioner shall not give approval to initiate investigation unless he has obtained approval from the Member (Inland Revenue Operations) of the Board;
(c) Before seeking approval of the Member (lnland Revenue Operations), it is binding upon the Commissioner to make consultation with two representatives of the business community from amongst such representatives as notified by the FBR;
(d) For the purpose of paragraph (c) of this STGO, the Board shall notify a list of representatives of business community on FBR’s web portal;
(e) For the purpose of paragraph (d), the trade organizations mentioned in column (3) of the Table below shall nominate two persons each, (who should be compliant and reasonably significant taxpayers) and send their names to the Member Inland Revenue Operations, FBR Head Quarters.
| S.No. | Region | Trade Organization |
| (1) | (2) | (3) |
| 1 | LTO Lahore, CTO Lahore, RTO Lahore, RTO Gujranwala and RTO Sialkot | PBC, LCCI, FPCCI, Sialkot and Gujranwala Chamber of Commerce and Industry |
| 2 | RTO Faisalabad and RTO Sargodha | FPCCI, APTMA and Faisalabad Chamber of Commerce and Industry |
| 3 | LTO Multan, RTO Multan, RTO Sahiwal and RTO Bhawalpur | FPCCI and Multan Chamber of Commerce and Industry |
| 4 | LTO Islamabad, CTO Islamabad, RTO Islamabad and RTO Rawalpindi | PBC, FPCCI and Chamber of Commerce and Industry from Islamabad and Rawalpindi |
| 5 | LTO Karachi, MTO Karachi, CTO Karachi, RTO-1 Karachi and RTO-II Karachi | PBC, OICCI, FPCCI and KCCI |
| 6 | RTO Quetta, RTO Hyderabad and RTO Sukkur | FPCCI, Chamber of Commerce and Industry from Quetta and Hyderabad |
| 7 | RTO Peshawar and RTO Abbottabad | FPCCI and Sarhad Chamber of Commerce and Industry |
(f) The Member Inland Revenue Operations shall nominate 02 persons for each region for consultation from amongst persons nominated by the Trade Organizations based on the income tax payments made by them for the latest tax year, exports and compliance history.
(g) The Member Inland Revenue Operations shall not select more than one person from a nominating trade organization in one region.