Islamabad, June 16, 2025 – The Federal Board of Revenue (FBR) has revealed that several influential individuals, including a former senator and ex-customs official, were involved in high-value tax fraud, prompting renewed debate over the FBR’s proposed arrest powers in the Finance Bill, 2025. During a meeting of the Senate Standing Committee on Finance, FBR Chairman Rashid Mehmood Langrial strongly defended the proposed authority to arrest individuals involved in tax fraud after the completion of an inquiry. He emphasized that fraud on such a scale is a criminal offense and must be treated accordingly. Langrial revealed that a former customs officer, now in FBR custody, had guided a shoe manufacturer on how to evade millions in sales tax, a scheme which the FBR has documented with video evidence. He stressed that such actions warrant immediate legal consequences and highlighted that one of the culprits is a high-profile figure who previously served as a senator. Currently, the law allows FBR officers to arrest suspects during the inquiry stage. However, the proposed amendment in Clause 37A seeks to shift this power to the investigation stage and introduces a requirement for the Commissioner’s approval. State Minister for Finance Bilal Azhar Kiyani defended the amendment, stating it would uphold procedural fairness and reduce the possibility of arbitrary arrests by low-ranking officers. The committee, chaired by Senator Saleem Mandviwalla, rejected the FBR’s proposal in its current form. Senators demanded a well-defined threshold for arrests in tax…