FBR may detain 'tax evaders' sans warrants

Business community says 'unconstitutional' move to promote 'abuse of power'

Data shared with lawmakers reveals that over the past three years, the number of registered business taxpayers has increased by 5.3 million . PHOTO: EXPRESS

HYDERABAD:

The business community condemned the federal government's decision to allow the Federal Bureau of Revenue (FBR) to arrest traders and industrialists on suspicion of tax evasion.

Office bearers of the Hyderabad Chamber of Small Trade and Small Industry (HCSTSI), in their reaction to the federal and provincial budgets, categorically rejected the insertion of Section 37AA into the Sales Tax Act, on Sunday.

They contended that the powers authorised to the FBR are unconstitutional and undemocratic besides being inimical to trade and industry. HCSTSI President, Muhammad Saleem Memon stated "granting FBR officers the power to arrest any trader without a warrant and to detain them for up to 14 days is a gross abuse of authority and a clear violation of human and economic rights." The chamber demanded the government withdraw from this decision, warning that if the authorities remained stubborn, the business community would resort to nationwide protests.

With regard to the much delayed Sukkur-Hyderabad Motorway project, the chamber complained that a paltry sum of Rs15 billion was earmarked for FY 2025-26, for a project requiring around Rs400 billion. Memon argued "at this pace the project may take a decade or more to complete." The business community viewed the allocation as a reflection of the centre's disregard for vital road projects, which would benefit hundreds of millions of people travelling within Sindh, and towards Punjab.

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