The sudden rise in prices at Kababjees Restaurant FBR's recovery of 80 million dollars from banks alarms business community.
The Federal Board of Revenue (FBR) is said to have taken over Rs. 80 million directly out of the bank accounts of Kababjees, a well-known Karachi restaurant chain. This is a shocking turn of events. The recovery was made without prior notice or a fair hearing, which was widely criticized by business groups all over the country. MNA Mirza Ikhtiar Baig expressed deep concern over the tax authority's "harsh and arbitrary" action during a session of the Standing Committee on Finance and Revenue of the National Assembly. According to Baig, such unannounced measures not only create fear among the business community but also damage investor confidence, which is already fragile due to economic instability. He stated that the FBR’s action came without warning, bypassing standard legal protocols, and denied the restaurant owners a chance to explain or respond to any tax discrepancies. This sudden withdrawal has now become a talking point among entrepreneurs and traders who view it as an example of administrative overreach.
FBR Chairman Rashid Langrial assured the committee that he would personally investigate the issue and request a report from the relevant regional office in Karachi in response to the raised concerns. Committee Chairperson Nafeesa Shah acknowledged the issue and promised that the matter would be thoroughly investigated to ensure fairness and accountability.
This is not the first time FBR has used aggressive tactics to meet its revenue targets. Over the past year, the department has ramped up enforcement efforts, including freezing accounts, blocking property transactions, and cutting off utility services for suspected tax evaders. These strategies, though effective in increasing short-term revenue collection, are being criticized for their impact on the business climate. Additionally, tax professionals have expressed concern regarding the FBR's decision to eliminate the requirement for a 24-hour notice prior to account freezing, an amendment that has increased the vulnerability of businesses to sudden disruptions. While the government is under pressure to meet International Monetary Fund (IMF) benchmarks, especially under the Extended Fund Facility (EFF), stakeholders argue that tax compliance should be encouraged through facilitation and legal transparency, not coercion. At a time when economic revival is most needed, it could discourage domestic and foreign investment if businesses feel threatened rather than supported. The incident involving Kababjees serves as a wake-up call for policymakers to review current enforcement strategies. A fair, transparent, and consistent tax system is essential not only for national revenue but also for nurturing a business-friendly environment that contributes to long-term economic stability.
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