The Federal Board of Revenue (FBR) has issued a notification listing representatives of major trade bodies who must be consulted before any investigation or arrest of businessmen accused of tax fraud, in accordance with the Sales Tax General Order (STGO) No. 02 of 2025.
The notification stated that representatives have been nominated from the Pakistan Business Council, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the Lahore Chamber of Commerce and Industry (LCCI), the All Pakistan Textile Mills Association (APTMA), and the Chambers of Commerce and Industry of Multan, Quetta, Hyderabad, and Sarhad.
According to the FBR, since the announcement of the federal budget for 2025–26, no First Information Report (FIR) has been registered against any businessman under charges of tax fraud.
Under the revised procedure outlined in the STGO, the FBR clarified that no investigation will be initiated without prior consultation with the nominated business representatives and approval from the Member Inland Revenue (Operations). The procedure aims to ensure transparency and prevent undue action against taxpayers.
The FBR explained that an inquiry into any suspected tax fraud cannot begin without the approval of the concerned Commissioner. After the inquiry, the Commissioner must seek authorisation from the Member Inland Revenue (Operations), who can only approve the investigation after consulting two representatives from the notified list.
The Board added that each nominated trade body must propose two compliant and significant taxpayers for potential inclusion. From these nominations, the Member Inland Revenue (Operations) will select two representatives per region, ensuring that no trade organization is represented more than once in a single region.
