Islamabad, September 26, 2025 – The Federal Tax Ombudsman (FTO) has initiated an investigation into recent changes made to the wealth statement, a crucial component of the annual income tax return.
The inquiry follows a complaint filed by Waheed Shahzad Butt, prompting the FTO to summon representatives of the Federal Board of Revenue (FBR) for a hearing scheduled on September 29, 2025.
The controversy stems from the FBR’s recent decision to make it mandatory for taxpayers to include the estimated market value of properties in their wealth statements for the tax year 2025. While the FBR clarified through a press release that no changes were made to the return form itself, the new requirement effectively compels taxpayers to provide subjective estimates of their assets’ market value.
Waheed Shahzad Butt criticized the move, calling it “a blatant violation of law” that ignores clear provisions of Sections 114, 115, and 116 of the Income Tax Ordinance, 2001, along with Rule 73 of the Income Tax Rules, 2002. He argued that requiring a subjective estimated value in the wealth statement is arbitrary, exposes taxpayers to potential harassment, and may lead to unnecessary litigation.
He emphasized that no statutory provision obligates citizens to declare estimated current market values in the wealth statement, making the FBR’s directive a clear departure from established practice. The FTO is expected to conduct a thorough investigation into this issue and recommend action against FBR officials responsible for the alleged maladministration of the statutory wealth statement form.