Karachi, February 25, 2025 – The Pakistan Tax Bar Association (PTBA) has raised concerns regarding the difficulties taxpayers face in complying with various tax statutes.
In a letter addressed to Hamid Ateeq Sarwar, Member Inland Revenue Operations of the Federal Board of Revenue (FBR), the PTBA highlighted multiple representations received from member bars across Pakistan regarding procedural inefficiencies causing hardships for compliant taxpayers.
The PTBA outlined the following major issues affecting taxpayers:
• The lengthy and complex verification process for manufacturing site inspections has led to significant delays in obtaining sales tax registration. The PTBA emphasized the need for a streamlined process to facilitate timely registration.
• The correction of CPR (Computerized Payment Receipt) remains cumbersome, requiring taxpayers to navigate bureaucratic hurdles that consume valuable time. Given FBR’s ongoing digitalization efforts, the PTBA has recommended a fully automated CPR correction procedure to alleviate taxpayer hardships.
• Section 26 of the Sales Tax Act, 1990, allows for the upward revision of returns within sixty days of filing without requiring CIR permission. However, the current system does not support such revisions in accordance with the law. The PTBA urged that the system be updated to enable revisions as per the provisions of Section 26.
• As part of automation efforts, the FBR occasionally implements amendments through SROs that require updates to the IRIS system. However, the PTBA has observed inconsistencies where system updates do not align with legislative changes, causing confusion. In some instances, system upgrades occur in response to commitments made to donor agencies before corresponding legal amendments are enacted. The PTBA recommended that amendments in the law be issued first, followed by system updates to ensure consistency and compliance.
The PTBA has urged the FBR to address these procedural inefficiencies and streamline tax compliance mechanisms. The association looks forward to proactive intervention in resolving these issues, ensuring that taxpayers can fulfill their obligations under the law without unnecessary hardship.