Finance Minister Muhammad Aurangzeb has outlined a framework of safeguards aimed at preventing misuse of arrest powers by tax authorities when dealing with alleged business-related tax fraud. The announcement was made during the fifth session of the Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla, as deliberations continue on the Finance Bill 2025.

In response to concerns from the business sector, the Finance Minister said these safeguards were implemented on the directive of Prime Minister Shehbaz Sharif to ensure fair treatment of taxpayers and discourage arbitrary arrests by FBR officials.

The safeguards include:

• Arrests must be approved by a high-level board within the FBR.
• Action can be taken if there is a credible risk the accused may flee the country.
• Evidence of tampering with financial records can trigger an arrest.
• If the fraud amount exceeds Rs. 50 million, the accused may be detained.
• Failure to respond to three formal tax notices can also lead to arrest.

These steps are intended to balance enforcement with accountability, reassuring the business community while maintaining the integrity of the tax system.