Mohsin Siddiqui (Chief Reporter)

The Federal Board of Revenue (FBR) has taken a significant step towards streamlining the resolution of pending income tax refunds by forming a dedicated committee. Chaired by Arshad Nawaz Chheena, Chief (Revenue Operations)/CITRO, IR-Operations Wing at FBR HQ, Islamabad, the committee includes members such as Tauqeer Ahmad, Chief IR (BPR), IT Wing, FBR HQ, Islamabad; Irfan Khan, Commissioner Inland Revenue, Zone-IV, Large Tax Office (LTO), Islamabad, and Muhammad Sajid Ahmad, Secretary (Income Tax Policy), IR Policy Wing, FBR HQ, Islamabad.

The FBR issued terms of reference (TORs) for the committee, focusing on electronic processing and issuance of income tax refunds under Section 170A of the Income Tax Ordinance, 2001. The section mandates the electronic transfer of sanctioned refund amounts to the taxpayer’s notified bank account.

The committee’s primary objectives include addressing inordinate delays in refund issuance and enforcing Section 170A effectively. Additionally, the committee will adhere to TORs outlined in the judgment by the Islamabad High Court (WP No 21731 2023), including:

1. Review and examine pending refund applications not processed within legal timeframes.
2. Propose reforms to eliminate delays in processing refund applications, including conduct improvements.
3. Provide suggestions for the prompt resolution of refund applications under Section 171 of the Income Tax Ordinance, 2001, encompassing guidelines for compensation eligibility.
4. Develop the necessary Change Request Form (CRF) blueprint for essential software development.
5. Furnish findings and recommendations within 45 days from the notification’s issuance.

Stay tuned for updates on this crucial initiative to enhance the efficiency of income tax refund processes in Pakistan.