The Federal Board of Revenue (FBR) in Pakistan has been stripped of the authority to recover taxes by directly freezing bank accounts without prior notice, under the newly passed Finance Act 2026.
The legislative move explicitly denies the tax authority the power to act unilaterally on taxpayer assets without due process, a provision that had been the subject of intense speculation and misinformation in recent weeks.
Rumors circulating on social media had suggested the FBR was being granted sweeping new powers to seize funds, causing unease among businesses and investors concerned about liquidity risks and regulatory overreach.
The final text of the Finance Act clarifies that such actions require proper notification, effectively neutralizing the fears that had been driving negative sentiment in local markets.
This development follows a period of heightened scrutiny on the FBR's enforcement methods.
Just days prior, the Anti-Corruption Bureau (ACB) reportedly failed to convince the High Court to extend restriction notices on certain accounts, prompting legal observers to question the consistency of enforcement actions.