PM Responds to Media Reports on Tax Defaulters’ Arrests, Forms Special Committee

Prime Minister Muhammad Shehbaz Sharif has taken notice of media reports concerning the arrest of tax defaulters and has issued strict directives to ensure that no legal amendments are misused to harass the business community or taxpayers under any circumstances. Emphasizing the importance of a fair and transparent tax system, he stressed that legal measures should be implemented responsibly, without creating undue pressure on businesses. The Prime Minister reaffirmed his commitment to fostering a business-friendly environment while ensuring compliance with tax regulations through just and ethical enforcement.

The prime minister was briefed that the legal provisions for the arrest of sales tax defaulters had been part of the law since the 1990s, however, in the light of decisions by the courts, amendments were being made to these clauses to make them more coherent.

After thoroughly reviewing the matter, the prime minister opined that harassing regular taxpayers was unacceptable.

“The respect and dignity of the business community and investors is of utmost importance to us and any unjustified harassment is intolerable,” the press release quoted the prime minister as saying.

He further instructed that the mandate of arrest under relevant tax laws should be limited only to cases involving defaulters of an extraordinary scale.

The prime minister also directed that an effective system of external review and checks and balances be put in place regarding arrests.

Provisions related to protection against misuse of these laws should be included in the Finance Act, he further observed.

He further directed that all allied parties of the government in the parliament should be consulted on this matter.