A major controversy has erupted across the country following a proposal in the Finance Bill 2025 that seeks to empower the Federal Board of Revenue (FBR) with the authority to arrest traders accused of tax fraud.

According to sources, Prime Minister Shehbaz Sharif has taken notice of the public outrage and summoned an emergency meeting of his economic team.

The meeting is expected to be attended by the finance minister, FBR chairman, and the minister for law.

As per the bill, FBR commissioners would be authorised to arrest individuals suspected of tax evasion without a warrant and propose penalties extending up to 10 years in prison.

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Business associations and the trading community have expressed serious reservations over the proposed powers.

The Pakistan Business Council (PBC) formally wrote to the prime minister, urging a review of the FBR’s expanding authority.

The letter warned that such measures would severely damage the country’s business climate.

Meanwhile, in a heated National Assembly address, Pakistan People’s Party (PPP) leader Abdul Qadir Patel harshly criticised the controversial clauses in the Finance Bill.

Addressing the lower house, Patel declared that his party would not support any legislation that undermines public interest. “This is not tax collection; this is extortion,” he said.

Patel further claimed that under the proposed law, the FBR would be allowed to freeze bank accounts without prior notice and even withdraw funds.

He added, “An inland revenue officer could be stationed at a shop or factory and could arrest someone merely on suspicion.”

He warned that arrests would precede investigations, which violates basic human rights.

Raising a pointed question, Patel asked, “Who would be foolish enough to do business under such circumstances? If you station FBR personnel at every factory and shop, who in their right mind will invest here?