New tax rules: FBR gets power to freeze accounts, monitor stocks

The federal government has promulgated the Tax Rules Amendment Ordinance, 2025 after making three amendments to the Income Tax Ordinance, 2001, thus giving more powers to the Federal Board of Revenue (FBR) to recover tax, reported 24NewsHD TV channel on Sunday. 

Under the ordinance, several amendments have also been made to the Federal Excise Act, 2005.

Now the FBR can immediately freeze the bank accounts, appoint officers at business centers, and monitor stock and production. 

The ordinance has increased the powers of all officers of both the federal and the provincial governments. 

The bureau has been given the powers after the yawning tax shortfall reached Rs830 billion in 10 months. 

The government could not wait for the presentation of the budget in the National Assembly, which is expected to be tabled in less than a month.

The tax shortfall is widening with the passage of every month despite imposing record Rs1.3 trillion in additional taxes and Prime Minister Shehbaz Sharif's promise to minimise the gap through recoveries in the court cases.

The ordinance came into effect on May 2 after the signatures of President Asif Ali Zardari. 

The amendment has limited taxpayers' ability to defer payment once liability is upheld by superior courts.

The Lahore Chamber of Commerce and Industry had on Saturday issued a statement against what it called harsh powers given to the FBR, demanding the prime minister take the decision back.
For this fiscal year, the government had given the tax target of Rs12.97 trillion to the FBR and it is already facing Rs830 billion in shortfalls, with two months remaining in the close of the fiscal year.

Reporter: Waqas Azeem