LCCI condemns FBR raids, urges PM and finance minister to take immediate notice

LAHORE  -  The Lahore Chamber of Com­merce and Industry has strongly condemned the Fed­eral Board of Revenue’s ongo­ing raids on industrial units, which are severely disrupting the business environment.

“The LCCI has expressed deep concern over the harass­ment of taxpayers under the pretext of combating sales tax evasion and urged Prime Minis­ter Shehbaz Sharif and Finance Minister Muhammad Aurang­zeb to take immediate action to stop these harmful practices.”

LCCI President Mian Abu­zar Shad said that the FBR has been raiding industries with­out prior notice, and register­ing FIRs without issuing show-cause notices, investigation and demanding impractical affidavits from Chief Financial Officers (CFOs). These affida­vits require CFOs to guarantee that all of their buyers and sup­pliers, and even their extended networks, are complying with the law—a requirement that Mian Abuzar Shad described as both unreasonable and impos­sible. He questioned how any CFO could be expected to take responsibility for the actions of entities several layers removed from their direct control.

The meeting was attended by a significant number of con­cerned taxpayers, who shared alarming stories of their ex­periences with FBR raids. They explained that the lack of proper investigation and the abrupt registration of FIRs have left businesses in a state of fear and uncertainty. Many businesses have been forced to divert their time, energy, and financial resources toward defending themselves in legal battles instead of focusing on growth and productivity.

The LCCI president argued that these heavy-handed tactics are stifling business operations at a time when Pakistan’s econ­omy is already under significant strain. “The business communi­ty is a crucial driver of economic growth, and by creating an at­mosphere of fear, the FBR is only impeding our progress towards economic recovery,” he said. He emphasized that businesses cannot operate in an environ­ment where they are constantly being harassed by the authori­ties without due process.

Mian Abuzar Shad called for a more structured and trans­parent process to address any legitimate concerns the FBR may have about tax evasion. He outlined the need for a step-by-step approach, including the is­suance of show-cause notices, followed by thorough investi­gations. If evidence is found of wrongdoing, then and only then should the FBR proceed with le­gal action. “The current practice of jumping straight to legal ac­tion, without giving businesses a chance to explain or defend themselves, is unjust and coun­terproductive,” he added.

The LCCI president further noted that it is the FBR’s respon­sibility to ensure that registered taxpayers are monitored regu­larly. He said, “If the FBR fails to monitor a taxpayer for five years, that is the FBR’s failure, not the fault of the businessman. Instead of admitting its short­comings, the FBR is shifting the blame onto the business com­munity, worsening the already fragile economic situation.”

The Lahore Chamber reiter­ated its demand for the govern­ment to halt these raids immedi­ately, warning that if such actions continue, they will inflict long-term damage on Pakistan’s in­dustrial base. “The government’s efforts to stimulate economic recovery and attract investment will be in vain if the FBR contin­ues to pursue these aggressive tactics against the very taxpayers who are key to driving economic growth,” Mian Abuzar Shad said.

He urged Prime Minister She­hbaz Sharif and Finance Minis­ter Muhammad Aurangzeb to take immediate and decisive steps to rein in the FBR’s over­reach and ensure that future ac­tions are in line with the princi­ples of due process and fairness. The LCCI emphasized that the government must foster a more supportive business environ­ment by promoting policies that encourage growth, investment, and economic stability rather than creating hurdles for the business community. The La­hore Chamber of Commerce and Industry remains steadfast in its commitment to defending the rights of businesses and ensur­ing a fair, transparent, and con­ducive environment for indus­trial growth in Pakistan. It called on the authorities to prioritize the resolution of these pressing issues, warning that failure to do so will have severe implica­tions for the broader economy.