FBR Gets Power to Take Funds From Banks and Confiscate Property

President Asif Ali Zardari has promulgated draconian “Tax Laws (Amendment) Ordinance, 2025” for immediate recovery of taxes from taxpayers’ bank accounts or other movable/immovable properties following decision from higher courts without any further notices. After promulgation of the “Tax Laws (Amendment) Ordinance, 2025”, the FBR is not required to issue any new notice to the taxpayer and recover the dues amount of taxes without issuing any notice under section 138 of the Income Tax Ordinance 2001. The Ordinance has given ample powers to the Federal Board of Revenue (FBR) to depute tax officials at manufacturing/business premises for monitoring of production, supply of goods and stock of unsold goods. Soon after promulgation of “Tax Laws (Amendment) Ordinance, 2025”, the Federal Board of Revenue (FBR) immediately started recovery proceedings and enforcement measures late Saturday night against companies where courts have granted decisions in favour of the FBR. Sources told ProPakistani that the first victim of the Ordinance is a cellular company (Telenor Pakistan (Private) Limited), the company agreed to pay the due amount in billions to the FBR after order of the Islamabad High Court (IHC). In an official statement, the telco told ProPakistani, The second victim of the Ordinance is another telecom-related company (joint venture) which also agreed to pay the due amount of taxes as per court order, sources added. Elsewhere, FBR and Jazz reached an agreement for the payment of Rs. 20 billion in taxes related to the import of plant and equipment, with Jazz deciding not to pursue further litigation. Deodar, responsible for Jazz’s cell sites and telecom towers, was sold to Engro Corporation in a $563 million deal approved by the Competition Commission of Pakistan. However, the transaction remains pending due to unresolved legal issues. In a statement, Jazz said neither Pakistan Mobile Communications Limited (PMCL-Jazz) nor its wholly owned subsidiary, Deodar, has received any adverse judgment in court, contrary to what was reported. It said,