KCCI tells Senate body FBR can’t be judge, jury and executioner

ISLAMABAD: Karachi Chamber of Commerce and Industry (KCCI) Thursday categorically conveyed to the Senate Standing Committee on Finance on Thursday that the business community cannot allow Federal Board of Revenue (FBR) to simultaneously be the judge, jury and executioner of taxpayers.

The Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla, met Thursday to discuss the anomalies in Financial Budget 2025-26.

The Committee had an extensive discussion on several anomalies in the Financial Budget 2025–26. Members of the Chambers of Commerce briefed the Committee on these anomalies, with specific focus on the clauses granting powers to the FBR to arrest on the basis of suspicion. They warned the Committee about the potential misuse of such clauses for the harassment of the business community.

In a presentation before the committee, President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Jawed Bilwani highlighted that FBR has authorized Inland Revenue officers to arrest directors, CEOs, CFOs, and individuals involved in tax fraud under Section 37A of the Sales Tax Act, 1990. We cannot allow FBR to be the judge, jury and executioner of tax payers. This is a democratic country where citizens rights are protected by the judiciary. This act will cause harassment and corruption on a level unseen before eventually leading to taxpayers closing their legitimate businesses, moving their

Investments abroad and Ease of doing Business Index sinking

To an all time low. The whole point of this law is to catch people who issue fake or flying invoices so is it not easier to simply specify this law for this specific offence.

Jawed Bilwani further specified that the Definition of tax fraud is too vague and extremely open ended and there are apprehension of its abuse. Therefore, the said definition be restricted to make it applicable only in cases of issuance of fake and flying invoices.

President KCCI stated that the new section14AE gives

FBR very scary powers to force taxpayers into registering for sales tax. This law should be made softer in stance and powers need to be curtailed to an understandable extent.

The language of this law will scare anyone even thinking of registering as a Sales Tax filer from entering the regime.

This is a classic example of carrot and stick. We do not endorse this measure and urge FBR to have a more reasonable approach.

Jawed Bilwani added that e-bilty should be removed under section 40C to remove local transfer of goods within Pakistan from this act.

Digital invoicing should be implemented in a phase wise manner starting from multinationals and Public Limited entity with a Turnover in excess of Rs10 billion and then moved to the medium and ultimately small sized taxpayers with respect to turnovers.

The system should be made absolutely free.

Currently only one integrator certified by FBR is free while others are at cost.—SOHAIL SARFRAZ