PTBA Criticizes FBR for Bureaucratic Delays in Tax Reforms

Hold onto your hats—Pakistan’s tax system is in turmoil! The Pakistan Tax Bar Association (PTBA) has unleashed a scorching critique, slamming bureaucratic red tape for strangling the government’s lofty plans to overhaul the Federal Board of Revenue (FBR) and digitize its operations. These reforms were supposed to protect tax revenues, expand the tax base, and make life easier for honest taxpayers—but instead, they’re choking businesses and mocking promises of a business-friendly environment!

In a blistering letter to the FBR chairperson on Wednesday, the PTBA exposed how bureaucratic delays—despite tweaks in the Finance Act of 2024—are paralyzing commerce and betraying the government’s pro-business rhetoric. The association didn’t hold back, spotlighting rogue tax officers who slap taxpayers with pre-suspension notices and demand payments without bothering to verify claims. Even when taxpayers wave ironclad documentary evidence to back their input tax claims, these officers keep squeezing for cash, threatening to suspend sales tax registrations if they don’t comply.

This heavy-handed tactic flies in the face of the government’s commitment to fairness, the PTBA roared. They demanded that the FBR issue crystal-clear directives: actions on input tax disallowances must follow proper verification under Section 11, and suspensions should only hit those who can’t back up their claims, as ruled by the Supreme Court in the landmark Commissioner Inland Revenue, Lahore vs. Eagle Cable Private Limited case (CPLA 2400-L/2022).

The PTBA also tore into the sluggish appeals process. Despite updates to Section 21(5) of the Sales Tax Act, 1990, allowing taxpayers to appeal suspensions directly to Chief Commissioners, these pleas often languish, crushing business operations. The association proposed a game-changer: let taxpayers file representations via the Iris portal for transparency and to track delays, forcing the FBR to fix bottlenecks fast.

Smaller cities are getting hit hardest, the PTBA warned. The shift from manual to electronic appeal filing is a nightmare, with taxpayers forced to lug physical files to hearings and Commissioners often AWOL during video link sessions, leaving unqualified staff or inspectors to fumble through. The PTBA’s fix? Commissioners must personally handle online hearings to ensure fairness.

This isn’t just a complaint—it’s a battle cry for reform. The PTBA is sounding the alarm on Pakistan’s broken tax system, demanding streamlined processes and fewer hurdles, especially for taxpayers in smaller cities. The clock’s ticking for the FBR to step up!