The Senate Standing Committee on Finance and Revenue has approved a proposal empowering the Federal Board of Revenue (FBR) to conduct re audits of business records in cases where tax irregularities are suspected, as lawmakers continued their detailed review of the Finance Bill 2026-27.
The proposal forms part of the government’s broader effort to strengthen tax enforcement, improve compliance, and expand the revenue base.
Under the approved framework, a commissioner will be authorized to order a re audit of a taxpayer’s records after obtaining prior approval from the chief commissioner. Taxpayers will be allowed to present their position before any final decision is made, providing a safeguard against arbitrary action.
The committee, chaired by Senator Saleem Mandviwala, approved the measure during its ongoing clause-by-clause scrutiny of the Finance Bill. The Senate panel has been reviewing a range of tax proposals and enforcement measures before making recommendations on the budget legislation to the National Assembly.
Lawmakers also approved provisions allowing registered taxpayers to revalue their inventories. Under the proposal, stock valuations will be carried out by certified cost accountants, while any inventory re-audits will be conducted by accountants selected from an approved FBR panel. Commissioners will also have the authority to seek explanations from taxpayers on specific issues during proceedings.
In another decision, the committee approved sales tax exemptions for the import of bulletproof vehicles required for the upcoming Shanghai Cooperation Organisation summit and counter-terrorism operations. Imports under the exemption will require approvals from both the Ministry of Foreign Affairs and the Ministry of Interior.
To prevent misuse of the facility, the committee introduced amendments limiting the number of vehicles that can be imported and authorized the Ministry of Interior to determine operational requirements for counter terrorism purposes.
The re audit proposal is part of a wider package of tax administration reforms being examined under the Finance Bill 2026-27. The government has argued that stronger audit and compliance mechanisms are necessary to improve revenue collection and reduce tax evasion as it seeks to achieve its ambitious revenue targets for the next fiscal year.
