Mohsin Siddiqui (Chief Reporter)
President of Pakistan has decreed that manual filers of income tax returns will now receive the same tax benefits as their counterparts filing electronically. This pivotal decision aims to ensure equitable treatment for all taxpayers, regardless of their filing method.
Additionally, the President has issued a stern warning to the Federal Board of Revenue (FBR), emphasizing the lawful authority of the Federal Tax Ombudsman (FTO) under the FTO Ordinance, 2000. The FTO holds the power to direct the FBR to take corrective measures to prevent and address maladministration within the agency.
Rejecting an appeal lodged by the FBR against an FTO order, the President asserted that statutory bodies are obligated to fulfill their duties in accordance with the law. He stressed that there is no valid justification for interfering with the FTO’s directives, underscoring the importance of adherence to legal provisions.
The resolution of this issue stemmed from a public interest initiative spearheaded by Lahore-based tax lawyer Waheed Shahzad Butt. Following consultations between the FTO and FBR officials, measures were agreed upon to resolve the disparity between manual and electronic filers without resorting to unnecessary litigation, thereby saving taxpayer resources.
FTO Dr. Asif Jah directed the FBR to implement mechanisms and establish standard operating procedures (SOPs) to ensure that all manual filers of income tax returns for the latest tax year are active in the Active Taxpayers List (ATL) issued by the FBR. This directive aims to rectify the discriminatory treatment faced by manual filers.
Despite the FBR’s obligation to ensure fair taxation practices, it has been revealed that manual filers have been unfairly disadvantaged compared to electronically filed returns. This inequity has sparked criticism from various quarters, highlighting the urgency for corrective action by the tax authority.
Furthermore, concerns have been raised regarding the FBR’s violation of Rule 73 of the Income Tax Rules 2002, wherein manually filed returns were erroneously classified as “inactive,” contrary to legal provisions. The persistent efforts of advocates like Waheed Butt shed light on these injustices and call for immediate rectification.
The President’s directives underscore the need for FBR to address these shortcomings promptly, benefiting the wider public and ensuring fairness in taxation practices. Any instances of injustice should be reported to the apex authority for consideration, signaling a commitment to overhaul the current tax regime for the betterment of taxpayers.
