ISLAMABAD: The Pakistan Peoples Party (PPP) has refused to support the government’s proposal to grant the Federal Board of Revenue (FBR) arrest powers in tax fraud cases, a move which has intensified negotiations between the ruling coalition partners ahead of the budget’s approval by the National Assembly.
Deputy Prime Minister Ishaq Dar reached out to PPP leadership in hopes of resolving the dispute before the budget’s expected approval on Thursday. Despite the government’s attempt to address concerns by adding safeguards to prevent misuse of the proposed powers, the PPP has insisted that trust in the FBR remains a significant issue, hindering their support.
The proposal, introduced as part of the Finance Bill, would allow the FBR to arrest individuals without a court warrant for tax fraud offenses. In response to PPP’s concerns, additional safeguards were included in the bill during committee discussions, but these measures have not been sufficient to convince the PPP leadership.
PPP leaders have expressed strong objections, calling the powers “draconian” and likening the FBR to the National Accountability Bureau (NAB). They argue that the ability to arrest without judicial approval could lead to abuse, especially when it comes to politically motivated actions.
The government has stated that the additional safeguards aim to limit arrests to cases involving significant tax evasion and that court approval would still be required for some types of tax fraud. However, these reassurances have not alleviated the PPP’s fears of potential misuse. The issue is critical for the approval of the budget, as the PPP’s support is necessary for its passage in the National Assembly.
As the deadline for the budget approval approaches, discussions continue, with both sides seeking a resolution that will allow the bill to pass smoothly while addressing concerns over the proposed powers.
