FBR Granted Additional Powers Unrelated to Income Tax, Clarifies Finance Minister Aurangzeb

Finance Minister Muhammad Aurangzeb stated that the additional powers given to the Federal Bureau of Revenue (FBR) are unrelated to income tax. The enhanced enforcement powers allow the FBR to block significant financial transactions by non-filers, seal unregistered business premises, confiscate goods, and recover taxes from firms, including those in the public sector. This move has faced criticism.

In a press conference in Karachi, Aurangzeb clarified that the issue pertains to sales tax fraud, not income tax. He highlighted the development of new safeguards through a thorough legislative process involving standing committees and feedback from various stakeholders.

The finance minister emphasized the importance of banks supporting sustainable economic growth, particularly in privatization and reviving struggling units. He commended the banking sector for aiding economic progress and stressed the need for macroeconomic stability.

Aurangzeb also discussed the facilitation of foreign investors, the transformation of FBR processes, and the simplification of tax forms. He underscored the significance of credibility and trust in the tax authority.

He expressed his commitment to simplifying tax processes for different segments, starting with the salaried class, and highlighted the issuance of sales tax refunds to promote economic stability. Aurangzeb cautioned against unsustainable growth models and advocated for structural solutions to economic challenges.

According to the source: Dawn.