ISLAMABAD, June 15, 2025 — In a heated debate over the Finance Bill, 2025, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial came out strongly in defense of the proposed amendments granting FBR sweeping powers to arrest individuals involved in tax fraud.
The new proposal has sparked sharp criticism from lawmakers, business leaders, and civil rights advocates alike.
The proposed law would allow FBR officials to arrest CEOs, CFOs, directors, and other corporate figures suspected of serious tax fraud—without needing prior judicial approval. A day earlier, members of the Senate Standing Committee on Finance expressed grave concerns, arguing that FBR was assuming powers akin to the Criminal Procedure Code (CrPC) and bypassing due process.
Chairman Langrial, however, stood firm. “There is no country in the world where tax officers are not empowered to arrest tax evaders,” he said, citing India and Bangladesh as examples where tax authorities are already equipped with such powers. Langrial painted a stark picture of inequality, stating that the top 5% of Pakistan’s wealthiest households had evaded over Rs1.6 trillion in taxes, while the bottom 95% were responsible for only Rs0.14 trillion in evasion.
Langrial also criticized the current system of tariff protectionism, arguing that it leads to inefficiency and nepotism, where unqualified individuals rise to executive positions. “Tariff walls create inefficiencies and breed entitlement,” he added, suggesting that import tariffs should be dismantled to boost competitiveness.
As the Senate committee continued deliberations on final recommendations for the Finance Bill 2025–26, it approved proposals to raise the minimum wage from Rs37,000 to Rs40,000 and eliminate the 18% GST on solar panel imports. However, the FBR’s arrest powers remained the most contentious point.
Senator Anusha Rahman (PML-N) rejected the proposal, arguing that FBR cannot be allowed to arrest individuals on the mere “intent” of fraud, without solid proof or legal process. Senator Farooq H. Naek (PPP) also denounced the move, calling the powers excessive and undemocratic. PTI’s Senator Shibli Faraz warned that the country was becoming a police state, and demanded the withdrawal of FBR’s powers to arrest through its Inland Revenue officers.
As the debate intensifies, public scrutiny on FBR’s powers is likely to increase, with both lawmakers and citizens demanding stronger safeguards to prevent misuse of arrest powers in the name of tax enforcement.