ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif has taken notice of the Federal Board of Revenue’s (FBR) proposal to arrest traders involved in tax fraud.
According to FBR sources, the Prime Minister has summoned a high-level meeting to deliberate on the proposal. The session will be attended by the Finance Minister, FBR Chairman, and Law Minister.
Officials revealed that under the Finance Bill, the FBR has proposed the arrest of traders involved in tax evasion, with a maximum sentence of up to 10 years in prison.
On the other hand, Senate Standing Committee on Finance has rejected a proposed 10-year prison sentence for individuals involved in tax fraud.
During a meeting of the committee, members expressed strong reservations over the suggested punishment, terming it too severe for tax-related offences.
Earlier, Prime Minister Shehbaz Sharif directed the immediate and effective implementation of ongoing reforms in the Federal Board of Revenue (FBR), with a strong focus on digitization and automation of the tax system.
The prime minister while chairing a high-level review meeting here, emphasized the need for decisive action to correct what he described as “70 years of mismanagement” in the tax system.
PM Shehbaz Sharif stated that while maximum facilitation would be provided to honest taxpayers and businesses, those involved in tax evasion would face strict legal action without any concessions.
The prime minister acknowledged the efforts of the FBR and its supporting enforcement agencies in enhancing tax revenue and appreciated their work as commendable.
The meeting reviewed the introduction of a National Targeting System aimed at curbing sales tax evasion.
