A good decision

The Federal Board of Revenue (FBR) has made a well-merited intervention to stop the Directorate General of Intelligence and Investigation (DGI&I) from exercising powers under SRO 48 (1), 2008, to detect tax fraud - a move that drew a collective voice of protest from the business community.
The chambers of commerce and industry all over the country have been expressing apprehensions over a substantial increase in the powers of the DGI&I officers, especially the ones that authorised arrest of individuals, search of premises, and direct access to tax payers' records.
Hence, representatives of the business community did not surprise anyone when, opposing these provisions, they argued that junior staff of the directorate could use them for dishonest purposes. It is good to see that FBR lent a sympathetic ear to those concerns, and has now moved to address the same. DGI&I officers, including those serving at the level of deputy/assistant directors and appraisers, will not be able to exercise authority under SRO 48 (I) issued earlier this year.
Without a doubt, the most important decision in this regard is the one that prevents intelligence officers from arresting a person under section 37-b of the Sales Tax Act. Such arrests can cause abiding embarrassment and humiliation to people who, given due process, may prove to be innocent.
We have one sad example from a few years back when a Faisalabad businessman was arrested and subjected to severe interrogation in an investigation centre, causing his death.
There can be no two opinions on that all people must pay their dues to the state. And that those authorised to collect taxes need to take tough measures to curb unethical practices, of which there are aplenty in this society. But it is equally important to differentiate between toughness and high-handedness. The existing rules and regulations must be implemented without fear or favour.
At the same time, no one should be subjected to unnecessary harassment or humiliation. The fact of the matter is that as long as people have coercive powers they will use them, too. It is only appropriate, therefore, that FBR has decided to restrict some of the excessive powers the intelligence directorate officials have been exercising over the business people's affairs.
The decision should also be helpful in creating a positive business sentiment when our economy is passing through a particularly difficult phase. A poor law and order situation together with some elements of political uncertainty continues to have a dampening effect on investor interest. Decisions and actions like the present one that encourage rather than discourage business activity are always desirable. At this point, they are the need of the hour.