FBR Gains Power to Freeze Bank Accounts Under New Tax Laws Amendment Ordinance 2025

The federal government has enacted the Tax Laws Amendment Ordinance 2025, introducing key changes to the Income Tax Ordinance 2001 and the Federal Excise Act 2005. This move significantly strengthens the powers of the Federal Board of Revenue (FBR) in matters of tax enforcement and recovery.

Under the new Tax Laws Amendment Ordinance 2025, the FBR now has the authority to immediately freeze bank accounts for tax recovery once a taxpayer’s first appeal is concluded. The tax body can also recover outstanding taxes without delay and deploy officers directly to business premises.

One of the major amendments grants the FBR the power to monitor stock and production activities at factories and businesses. Officers may now be stationed on-site to oversee operations, ensuring compliance with tax laws in real time.

Additionally, the Federal Excise Act has been updated to extend enforcement powers of both federal and provincial officers. Government officials are now authorized to seize smuggled or untaxed goods from any factory, shop, or business location.

These changes reflect a broader effort to boost tax compliance and close enforcement gaps. With the FBR’s enhanced authority, the government aims to improve tax collection efficiency and crack down on evasion and illegal trade practices.

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