The Lahore Chamber of Commerce and Industry (LCCI) raised alarm over the Federal Board of Revenue’s (FBR) raids on industrial units.
In a statement, the LCCI expressed concern over the raids under what it called the “pretext of combating sales tax evasion” and urged the authorities to take immediate action to stop them.
In this regard, LCCI President Mian Abuzar Shad held a meeting attended by a significant number of concerned taxpayers, who shared their experiences with FBR raids. They explained that the lack of proper investigation and the abrupt registration of FIRs have left businesses in a state of fear and uncertainty. Many businesses have been forced to divert their time, energy, and financial resources toward defending themselves in legal battles instead of focusing on growth and productivity.
The LCCI President alleged that FBR has been raiding industries without prior notice, and registering FIRs without issuing show-cause notices, investigation, and demanding impractical affidavits from Chief Financial Officers (CFOs). These affidavits require CFOs to guarantee that all their buyers and suppliers, and even their extended networks, are complying with the laws that he described as both unjustified and impossible. He asked, how a CFO could be expected to take responsibility for the actions of entities not in their direct control.
He was of the view that these raids were stifling business operations at a time when Pakistan’s economy was already under significant strain. “The business community is a crucial driver of economic growth, and by creating an atmosphere of fear, the FBR is only impeding our progress towards economic recovery,” he said and emphasized that businesses cannot operate in such an environment.
Shad called for a more structured and transparent process to address any legitimate concerns the FBR may have about tax evasion. He outlined the need for a step-by-step approach, including the issuance of show-cause notices, followed by thorough investigations. If evidence is found of wrongdoing, then and only then should FBR proceed with legal action.
“The current practice of jumping straight to legal action, without giving businesses a chance to explain or defend themselves, is unjustified,” he added.
The LCCI President noted that it is the FBR’s responsibility to ensure that registered taxpayers are monitored regularly. He remarked, “If the FBR fails to monitor a taxpayer for five years, that is the FBR’s failure, not the fault of the businessman.”
The Lahore Chamber reiterated its demand for the government to halt these raids immediately, otherwise, these would inflict long-term damage on Pakistan’s industrial base.
