FBR empowered to seize bank funds
and property under new law
In a major development aimed at
tightening tax enforcement, President Asif Ali Zardari has promulgated the
"Tax Laws (Amendment) Ordinance, 2025," granting sweeping powers to
the Federal Board of Revenue (FBR) to recover taxes directly from taxpayers'
bank accounts and seize movable or immovable assets—without issuing prior
notices—once a decision is upheld by a higher court.
The ordinance, described by critics
as draconian, eliminates the requirement for the FBR to issue fresh notices
under Section 138 of the Income Tax Ordinance, 2001, before initiating recovery
proceedings. It also authorizes tax officials to be stationed at manufacturing
or business sites to monitor production, inventory, and goods supply.
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issues notification for integration with 'RADAR' System
Following the ordinance's enactment
late Saturday, the FBR launched immediate enforcement actions against entities
with pending court-affirmed tax liabilities. Sources confirmed that telecom
operator Telenor Pakistan was the first to comply, agreeing to pay billions in
taxes following an Islamabad High Court decision in favor of the FBR.
In a statement, Telenor Pakistan
said:
"Telenor Pakistan, as a law-abiding corporate entity and one of the
largest contributors to the national exchequer, remains committed to complying
with all applicable laws and regulations. We continue to engage constructively
with relevant authorities and reserve the right to pursue legal remedies as
necessary."
A second telecom company, reportedly
a joint venture, has also agreed to settle its tax liabilities as per the
court's ruling, sources added.
Read More FBR
recovers Rs23 billion from banks in a single day
Meanwhile, a separate agreement has
been reached between the FBR and Jazz for the payment of Rs. 20 billion in
taxes related to imported plant and equipment. Jazz opted to forgo further legal
challenges. The company’s infrastructure arm, Deodar, which manages telecom
towers, was sold to Engro Corporation in a $563 million deal, approved by the
Competition Commission of Pakistan but still pending due to unresolved legal
complexities.
Jazz clarified in a statement that
neither Pakistan Mobile Communications Limited (PMCL-Jazz) nor its subsidiary
Deodar has received an adverse court judgment.
"PMCL has consistently
fulfilled its obligations in accordance with the law. We remain committed to
compliance while preserving our constitutional rights," the statement read.
The new ordinance underscores the
government’s intensified efforts to improve tax collection and enforcement amid
mounting fiscal pressures, though it has sparked concerns over due process and
taxpayer rights.
Source: Pro Pakistani