ISLAMABAD: In a move to ensure greater transparency and accountability in tax enforcement, the government has significantly reduced the Federal Board of Revenue’s (FBR) authority to arrest tax defaulters. The decision, announced in the National Assembly by Minister of State for Finance Bilal Azhar Kayani, aims to prevent the misuse of power and align FBR's role with broader governance reforms.
The minister stated that FBR’s powers have been restructured to create a more balanced tax administration system. Key changes include restricting arrests during the inquiry phase and limiting them to specific cases of sales tax fraud involving amounts exceeding Rs5 million. Such arrests can now only be made with the approval of a designated three-member FBR committee.
Kayani emphasized that the government remains committed to maintaining recent economic stability while offering public relief through reforms and growth-oriented policies. Under the government's five-year economic roadmap, customs and regulatory duties on raw materials will be reduced, and machinery costs will be lowered to support industrial expansion.
The minister also announced an increase in funding for the Benazir Income Support Programme (BISP), from Rs592 billion to Rs716 billion—a 20% hike aimed at enhancing assistance for low-income families.
He expressed appreciation to the National Assembly and Senate standing committees for reviewing the Finance Bill 2025-26 and acknowledged the active involvement of the finance minister and his team in incorporating lawmakers' recommendations.
Additionally, he highlighted recent economic improvements, including a drop in the annual inflation rate and government decisions to raise salaries by up to 10% and pensions by 7%, with support from coalition partners.
