Prime Minister Muhammad Shehbaz Sharif has directed to constitute a special committee to sort out the issue of arrest of tax defaulters and the amendments in relevant laws.
Chairing a meeting in Islamabad on Monday to review matters of Federal Board of Revenue, the Prime Minister took notice of the media reports regarding arrest of tax defaulters.
The Prime Minister was informed that the power to arrest tax defaulters has been part of the taxation law since the 1990s, however, in view of verdicts of superior courts, amendments are being made in the relevant provisions to make the process more streamlined.
After examining the matter, the Prime Minister issued strict directives that no amendment in taxation laws should ever be used to harass the business community or taxpayers.
He emphatically stated that harassment of regular tax payers will never be tolerated, and honour and respect of the business community, investors and taxpayers must be upheld.
The Prime Minister directed for devising an effective system of external review and checks and balances regarding the arrest matter.
He emphasized that the powers to arrest under tax laws should be confined to the extent of tax evasion of exceptional volume.
The Prime Minister said provisions for protection against misuse of these laws should be made part of the Finance Act.
He directed for holding consultations on the matter with all coalition parties in the Parliament.
