The National Assembly’s Standing Committee on Finance on Monday reviewed critical amendments related to tax fraud under the Finance Bill 2025.

The meeting, presided over by Naveed Qamar, included a comprehensive briefing by the Federal Board of Revenue (FBR) chairman on clause 37-A and its proposed revisions.

During the briefing, the FBR chairman revealed that following discussions in the Senate committee and directives from the prime minister, a special committee led by Finance Minister Muhammad Aurangzeb was formed.

Based on its recommendations, a revised draft of the tax fraud law has now been prepared.

He explained that the definition of tax fraud has been divided into two distinct categories.

Under the proposed law, arrests will only be made if there is a clear risk of the accused fleeing, involvement in record tampering, and failure to respond to three official notices.

Furthermore, any arrest must be approved by a three-member FBR board committee.

Importantly, the FBR chairman stated that individuals accused of tax fraud involving amounts below Rs50 million will not be subject to arrest.

Committee Chairman Syed Naveed Qamar instructed that the newly revised draft be presented to the committee on the same day for review.

In a separate but significant development, the committee unanimously rejected the proposal to impose an 18% sales tax on solar panels.

Syed Naveed Qamar reiterated the committee’s firm stance, stating that no such tax should hinder the adoption of solar energy in a country grappling with an energy crisis.

Finance Minister Aurangzeb assured the committee that their concerns had been duly noted.

Notably, the Senate’s Standing Committee on Finance had previously dismissed the same proposal.

Members of the committee unanimously agreed that supporting solar energy is crucial and any tax on it would be counterproductive to the country’s renewable energy goals.