ISLAMABAD: The Senate Standing Committee on Finance has rejected a proposal suggesting a ten-year jail term for individuals involved in tax fraud.
The proposal was met with criticism from several committee members, including Senator Mohsin Aziz, who sarcastically remarked that a life sentence would be more fitting.
He pointed out that the Federal Board of Revenue (FBR) appeared to be equating tax fraud with murder.
FBR officials defended the proposal, proposing a ten-year jail term for cases where the tax fraud amount exceeded Rs1 billion.
For cases involving frauds between Rs10 million and Rs1 billion, a five-year sentence was suggested, while smaller frauds under Rs10 million would warrant a minimum sentence. However, committee members suggested that smaller cases should be penalized with fines instead of long jail terms.
The committee emphasized the importance of penalizing tax fraud but urged a more measured approach. FBR Chairman responded, asserting that financial crimes involving public money should be punished. Senator Farooq H. Naik called for revisiting existing laws rather than introducing harsher new amendments, while Finance Minister Muhammad Aurangzeb agreed that the current law is strict but could be improved.
The debate also saw a heated exchange as Senator Shibli Faraz accused government officials of imposing their will without consensus. Minister of State for Finance Bilal Azhar Kayani assured the committee that the proposal would be reintroduced after further discussions.
The committee concluded by agreeing to revisit the controversial clause regarding arrest powers in the next meeting.
