President Zardari Announces Rewards For Tax Filers. The President of Pakistan has issued an order stating that individuals filing income tax returns manually will now receive the same tax benefits as those filing electronically. Additionally, the Federal Board of Revenue (FBR) has been cautioned about the powers of the Federal Tax Ombudsman (FTO) to address maladministration under the FTO Ordinance, 2000.
According to sources, the President rejected an appeal by the FBR against an order of the FTO. The President emphasized that statutory bodies must fulfill their duties in accordance with the law and that there is no valid reason to overturn the FTO’s order. This decision underscores the importance of adherence to legal procedures and accountability in tax administration.
President Zardari Rewards For Tax Filers
According to sources cited by pakistanalerts, tax lawyer Waheed Shahzad Butt brought attention to this issue before the FBR and FTO as a public interest initiative. Following consultations, the matter was resolved without resorting to costly litigation. As part of the resolution, FTO Dr. Asif Jah instructed the FBR to implement mechanisms and standard operating procedures (SOPs) to ensure that all manual filers of income tax returns for the latest tax year are treated fairly and are active as per the Active Taxpayers List (ATL) issued by the FBR.
It has been revealed that manual filers of tax returns were subjected to unfair discrimination compared to electronically filed returns. This failure to address the needs of manual filers, who constitute a vulnerable segment of the taxpayer community, has faced criticism from various quarters. The directive from FTO Jah underscores the importance of equitable treatment and adherence to tax regulations for all taxpayers.
Waheed Butt highlighted that despite submitting a clear written notice regarding the flagrant breach of Rule 73 of the Income Tax Rules 2002 by the FBR, no action was taken. The FBR has unlawfully excluded certain taxpayers from the Active Taxpayers List (ATL) database, contrary to Rule 73.
Even though these taxpayers filed their income tax returns manually within the legally stipulated timeframe, the FBR categorized their filings as “inactive.” This action directly violates the provisions outlined in Rule 73.
President Zardari Announces For Tax Filers
The President has ordered the Federal Board of Revenue (FBR) to take significant steps to address these deficiencies and concerns. Implementing robust measures will not only benefit the general public but also individuals or taxpayers who face similar injustices despite fulfilling their obligations by filing their returns.
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The recommendations put forth by the Federal Tax Ombudsman (FTO) to establish mechanisms and standard operating procedures (SOPs) ensuring the activation of all filers for the latest tax year as per the Active Taxpayers List (ATL) are beyond dispute. Any representation challenging these observations is liable to be dismissed accordingly, as directed by the President.