New task force to fix Pakistan’s tax litigation crisis

FBR - Taxation

Islamabad: The Prime Minister’s Office has established a high-level Task Force to review and propose comprehensive reforms for the legal wing of the Federal Board of Revenue (FBR), in a move aimed at strengthening Pakistan’s tax litigation system and improving revenue enforcement.

The 10-member Task Force is headed by Shad Mohammad and includes senior legal and operational officials from the FBR, representatives from the Attorney General Office, the CEO of Pakistan Single Window, technical advisors, and prominent constitutional and tax lawyer Hafiz Ahsaan Ahmad Khokhar.

This initiative marks a significant step toward overhauling the FBR’s litigation framework at all levels, including adjudication within tax departments, Commissioner and Collector Appeals, Appellate Tribunals for Inland Revenue and Customs, as well as proceedings in High Courts, the Supreme Court, and the Federal Constitutional Court.

The government has acknowledged persistent challenges in litigation management that have weakened effective representation and enforcement of tax and customs laws. These issues have contributed to prolonged disputes, delayed case resolutions, and inefficiencies in safeguarding public revenue.

Under its Terms of Reference (TORs), the Task Force has been assigned a broad mandate to conduct a comprehensive evaluation of the existing legal infrastructure. This includes reviewing workload distribution, human resource capacity, logistical support, and operational efficiency within the FBR’s legal wings.

A central focus of the review will be identifying structural weaknesses, procedural bottlenecks, and systemic gaps that hinder timely resolution of tax disputes. The Task Force is also expected to recommend a modernized legal framework that enhances coordination between departments, reduces case backlogs, and ensures quicker adjudication.

Special attention will be given to improving the Litigation Management System (LMS), which has faced integration challenges with appellate tribunals and superior courts. Proposed reforms may include advanced case-tracking systems, improved communication channels between legal and operational teams, and targeted training programs to enhance the capacity of legal personnel.

The Task Force will examine all stages of litigation and has the authority to co-opt additional experts if required. The FBR will provide full secretarial support to facilitate its operations.

The Task Force is scheduled to submit its final report by April 15, 2026. Experts believe this initiative could play a pivotal role in modernizing Pakistan’s tax litigation system, ensuring transparency, accountability, and more effective protection of national revenue.