Federal Court Grants Tax Authorities Raiding Powers Without Notice

On February 26, 2026, the Federal Constitutional Court (FCC) of Pakistan upheld the authority of tax officials to conduct unannounced raids without prior notice, even in the absence of ongoing legal proceedings against taxpayers. Justice Aamer Farooq, in his ruling, stated that tax authorities possess broad powers under Section 175 of the Income Tax Ordinance, emphasizing that "the language of the law is clear and unambiguous" and that courts cannot impose additional conditions not included by Parliament. This decision has significant implications for tax enforcement, as it allows officials to act without a formal case pending against a taxpayer, thereby enhancing their ability to ensure compliance with tax laws. The court also mandated that the commissioner must provide a written statement specifying the legal provision allegedly violated before conducting a raid, aiming to prevent potential abuse of power. The ruling was reported by multiple sources, including Daily Times and Geo News, both reflecting a negative sentiment regarding the implications of this decision for taxpayer rights and privacy.