The Federal Tax Ombudsman (FTO) has called for immediate measures to secure taxpayer data and take action against those responsible for a major cybersecurity breach that resulted in Rs. 81.43 billion in fraudulent transactions and a tax loss of Rs. 14.66 billion. The breach exposed significant vulnerabilities in the Federal Board of Revenue’s (FBR) data security systems, pushing the FTO to urge the FBR to implement stronger cybersecurity protocols.
In addition to the breach, the FTO has recorded a sixty-seven percent rise in reported taxpayer grievances with the FBR in 2024 compared to the previous year. The FTO Secretariat has received 10,515 complaints in the past ten months of which 9,900 have been addressed successfully. This can be regarded as a sign of progress in how the government deals with the complaints of the taxpayers and the ways they do it to resolve the disputes.
Almas Ali Jovindah, Advisor to the Legal & Media Wing, stressed that combating corruption within the tax administration depends on the filing of official complaints by enterprises or businesses. He urged the business community to report cases of harassment to FTO without any fear because the commission is willing to address everybody’s concerns.
Section 33 of the FTO Ordinance solves disputes in an informal manner which was embraced by the company with the help of Jovindah. This initiative has helped a lot to ensure that wherever there is a delay in the processing of tax refunds is addressed and encouraged the refunding of Rs. 2.00 billion to the taxpayers in 2024 within the context of having issued Rs. 17.742 billion in 2023. Moreover, due to FTO’s more active approach 31 own motion investigations concerned systemic issues within tax administration were conducted.
The FTO has also made significant strides in raising public awareness about taxpayers’ rights. An experienced advisory team has so far held 117 outreach sessions this year informing the public how to lay complaints and seek remedies. The expansion of proceedings and the use of ITC and paperless solutions have contributed to launching this analysis further for those involved taxpayers worldwide, including American, Canadian, Saudi Arabian, and Chinese citizens.
An instance in which the FTO intervened was to evaluate the Punjab Council of Arts and Culture’s assertion that it had made unjust deductions from taxes. The system practices had to be corrected to comply with the Income Tax Ordinance in response to the FTO’s recommendations to restore fairness in the tax system.
Additionally, the FTO has taken a firm stance against FBR’s SRO 350(I)/2024, which caused complications in sales tax filings and business operations. The FTO requested that the FBR simplify the returns filing process, enhance the IRIS system, and automate inter-company transactions to facilitate the operations of the business entities.
These initiatives highlight the FTO’s expanding role in promoting transparency, accountability, and the protection of taxpayer rights, as it continues to drive reforms aimed at improving the efficiency and fairness of Pakistan’s tax system.
