PPA opposes ‘draconian powers' to tax officials
ISLAMABAD: Pakistan Poultry Association (PPA) has expressed serious concern that tax authorities are being given dangerous and draconian powers which may be misused to harass the formal tax paying sector.
According to a communication of PPA to top policy makers and budget makers on Thursday, Finance Bill 2025-26 proposed to grant to the Federal Board of Revenue (FBR) officers dangerous and excessive powers:
(i) Section 11E enables tax assessment and recovery based on suspicion without proper investigation.
(ii) Section 14AE allows arbitrary seizure of business premises and property without adequate safeguards.
(iii) Section 32B empowers private auditors with quasi-legal authority over businesses.
(iv) Section 33 introduces 10-year prison terms and Rs10 million fines for broadly defined 'tax fraud' that business errors are likely to be classified.
(v) Section 37AA authorizes arrest without warrant based on mere suspicion of tax fraud- a power that invites abuse and harassment.
(vi) Section 37B permits 14-day detention of businesspersons, extendable through magistrates.
(vii) Overriding the principle of client/advisor relationship, Section 58C will grant the FBR access to the offices of tax advisers and firms where discrepancies in returns are suspected.
Even criminals are given ample opportunity to be heard and no criminal is arrested without warrant.
The Federation must not just make verbal criticism; they should call the formal sector, which contributes more than 60% to the GDP, to close down their offices until the proposed powers are undertaken/set aside/withdrawn, PPA added.
Copyright Business Recorder, 2025
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