The Federal Tax Ombudsman (FTO) has demanded immediate action from Federal Board of Revenue (FBR) to address a significant cybersecurity breach that led to fraudulent transactions worth Rs. 81.43 billion and a tax loss of Rs. 14.66 billion.
FTO has also seen a 67% increase in complaints filed by taxpayers against FBR in 2024 compared to the previous year. However, the ombudsman’s office has resolved a significant number of these complaints, with a focus on informal dispute resolution through Section 33 of the FTO Ordinance.
FTO has also been instrumental in expediting tax refunds, with Rs. 2 billion refunded to taxpayers in just ten months. Additionally, the office has conducted 117 outreach sessions to educate taxpayers about their rights and responsibilities.
To improve efficiency and accessibility, FTO has adopted paperless and remote hearing solutions, allowing taxpayers to participate in proceedings from anywhere in the world. A recent decision by the FTO to rectify unjustified withholding tax deductions by the Punjab Council of Arts and Culture demonstrates the office’s commitment to fair taxation practices.
FTO has also called on FBR to simplify tax filing processes, provide clear guidelines, and update the IRIS system to avoid disruptions. The ombudsman has emphasized the need for an automated system to recognize mutual transactions between buyers and sellers, streamlining the tax filing process.
Through its proactive approach and commitment to taxpayer rights, FTO is playing a crucial role in improving Pakistan’s tax administration and ensuring a fair and efficient tax system.
