Businessmen fear FBR's free raid powers

KARACHI:

Korangi Association of Trade and Industry (KATI) President Muhammad Ikram Rajput has expressed deep concern over the Federal Constitutional Court's rejection of the plea to declare raids against taxpayers without a case unlawful and the subsequent granting of additional powers to tax authorities.

Rajput said that under the new powers, tax officials would be authorised to conduct raids at business premises at any time without prior judicial approval and to seize computers, documents and accounts. He noted that such authority had created anxiety among the business community.

He termed the extraordinary and disproportionate powers a direct intrusion into business autonomy, warning that commercial activities could be adversely affected. According to Rajput, the business sector is already burdened by rising costs and financial pressures and such measures will further increase uncertainty in the market while potentially encouraging corrupt practices. He cautioned that the misuse of unchecked powers could lead to harassment and bribery, undermining investor confidence and harming overall economic activity.

The KATI president urged the government to ensure that the Federal Board of Revenue (FBR) and relevant institutions were bound by clear standard operating procedures (SOPs), so that no action was taken at business premises without prior notice and unnecessary pressure on legitimate commercial activities was avoided.

Rajput emphasised that sustainable economic stability could only be achieved through a transparent, balanced and business-friendly tax system. He said the primary objective of government policy should be to foster trust and facilitate the business community.

He added that KATI would continue consultations with relevant authorities to help shape a tax framework that not only meets revenue targets but also supports economic growth and protects the interests of the business community.