Karachi, April 16, 2025 – The Pakistan Tax Bar Association (PTBA) has strongly criticized the Federal Board of Revenue (FBR) for its inefficiency and lack of commitment in addressing genuine concerns of taxpayers, despite the government’s claims of pursuing reform and digitization within the taxation system.
In a detailed letter addressed to FBR Chairman Rashid Mahmood Langrial, the PTBA expressed frustration over the gap between government promises and the actual conduct of FBR field officers. While the government touts major reforms and digital transformation to enhance tax compliance, expand the tax base, and reduce the difficulties of compliant taxpayers, the PTBA said the ground realities remain disappointing.
The PTBA stated it had received several complaints from its members across various regions, highlighting bureaucratic hurdles disguised as measures against tax fraud. These actions, the PTBA believes, are dampening business activity and undermining the government’s narrative of fostering a business-friendly environment.
One of the major grievances presented by the PTBA is the misuse of pre-suspension notices. The association reported that FBR officers frequently demand payment of input tax without proper verification, even when taxpayers present supporting documentation. In such cases, refusal to pay leads to suspension of sales tax registration, which contradicts both the spirit of fair tax administration and recent Supreme Court directions in the Eagle Cable Pvt Ltd case (CPLA 2400-L/2022).
Although an amendment to Section 21(5) of the Sales Tax Act, 1990, has introduced the right of representation to Chief Commissioners against registration suspensions, the PTBA highlighted that the FBR has failed to implement this effectively. Complaints persist that representations remain undecided for extended periods, disrupting businesses and causing financial distress. PTBA proposed that these representations be filed through the IRIS portal to ensure transparency and timely resolution.
Another concern raised by PTBA involves the transition to electronic filing of appeals before CIR Appeals. Taxpayers, especially from smaller cities, are facing multiple technical challenges, including the need to prepare physical files even for video hearings, often conducted by unauthorized staff instead of the CIR themselves. PTBA demanded that only the authorized Commissioner should conduct online hearings to maintain fairness and legal integrity.
Additionally, the PTBA criticized the delay in processing applications for tax exemptions and credits under Section 100C of the Income Tax Ordinance, 2001, and other relevant provisions. The Commissioner, CIR Zone-II-CTO Karachi, responsible for handling nonprofit and trust approvals, has reportedly been absent frequently, leaving critical applications pending without justification.
In conclusion, the PTBA urged the FBR chairman to take immediate corrective actions by issuing clear instructions to field offices. It also requested that copies of these directives be shared with PTBA so that taxpayers may be assured their concerns are being addressed. By taking these steps, FBR can begin to restore taxpayer trust and deliver on the promise of a reformed, transparent, and supportive tax environment.