Prime Minister Shehbaz Sharif has taken notice of reports regarding the possible arrest of tax defaulters under new laws, stating that recent amendments to tax laws must not be used as a tool to harass taxpayers.

He emphasized that those who regularly pay their taxes must not be subjected to any form of harassment, and added that the dignity and respect of the business community and investors are of utmost importance.

The prime minister made these remarks while chairing a high-level meeting on matters pertaining to the Federal Board of Revenue (FBR), where the issue of arresting tax defaulters was also discussed in detail.

According to an official statement, Prime Minister Shehbaz Sharif was briefed that the power to arrest sales tax defaulters has been part of the law since the 1990s.

However, in light of court decisions, amendments are being made to make the relevant provisions more coherent.

After reviewing the matter, the prime minister issued strict instructions that such amendments must never be misused to intimidate the business community or compliant taxpayers.

He reiterated that regular taxpayers must be protected from undue pressure and added that unjustified harassment of investors and business stakeholders is unacceptable.

The prime minister also directed the formation of a special committee to examine the issue and stated that the power of arrest under tax laws should be limited strictly to defaulters of an extraordinary scale.

Shehbaz Sharif further instructed that an effective external review and checks-and-balances mechanism be established with regard to arrests, and that protective clauses be included in the Finance Bill to prevent misuse of the law.

He also called for mandatory consultations with all coalition partners in parliament on the matter.

The meeting was attended by federal ministers for defence, law, commerce, economic affairs, and information & broadcasting, the minister of state for railways, the FBR chairman, economic experts, and senior government officials.