Budget 2025-26: Senate panel opposes arrest powers for tax commissioners

A parliamentary panel on Saturday pressed senior tax officials to drop proposed provisions in the Finance Bill 2025 granting arrest and money laundering notice powers to tax commissioners, warning the move would create unnecessary obstacles for businesses. The Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandvi­walla, convened for a second consecutive day to examine the Finance Bill 2025. Lawmakers debated the implications of enhanced powers for the Federal Board of Revenue (FBR) and discussed measures to curb tampered vehicles. Senator Mandviwalla warned that there is a grave risk of misuse of the power to arrest or issue a notice. Even a junior FBR officer sending a notice could create chaos, he warned. He also emphasised that receiving a money laundering notice often leads to business shutdowns. “Such notices should require the express permission of the FBR chairman and the finance minister,” he said.