FTO Cannot Handle Tax Assessments, Senate Committee Told

ISLAMABAD: On Wednesday, Attorney General of Pakistan Mansoor Usman Awan informed the Senate Standing Committee on Finance and Revenue that the Federal Tax Ombudsman (FTO) lacks authority to handle cases involving goods classification or tax assessments, according to Business Recorder.

Addressing the committee, chaired by Senator Saleem Mandviwalla, Awan clarified that the FTO’s jurisdiction excludes tax assessments, goods valuation, and classification, which fall under the Customs Classification Committee’s purview.

Per Section 9 of the Federal Tax Ombudsman Ordinance of 2000, the FTO is barred from intervening in matters under review by a court, tribunal, or other authority, or in cases involving income assessment, wealth, or goods classification and valuation when legal remedies like appeals or reviews are available.

The committee discussed the non-implementation of a Presidential Order dated July 16, 2025, concerning goods classification and the FTO’s jurisdiction. Members expressed concerns that challenging the Ombudsman’s decisions could undermine its role as a final appellate mechanism. It was decided that the Attorney General’s legal opinion would be sought to resolve the issue.

Additionally, the committee addressed allegations by Senator Dr. Afnan Ullah Khan regarding harassment of Senators by the Federal Board of Revenue (FBR). Chairman Senator Mandviwalla advised Dr. Khan to await the outcome of a pending appeal before the relevant forum. The committee emphasized the need for impartial tax administration and stressed that state institutions must not be used for political victimization.

The committee also reviewed the Virtual Assets Bill 2025, aimed at establishing a regulatory framework for virtual assets to prevent misuse while promoting innovation and economic participation, particularly among youth. Concerns were raised about consumer protection, regulatory overlaps, and alignment with existing legislation. The committee agreed to hold further deliberations in the next meeting to refine specific clauses.

The meeting was attended by Senators Abdul Qadir, Dr. Afnan Ullah Khan, Sherry Rehman, Faisal Vawda, Dilawar Khan, Farooq Hamid Naek, and Ahmed Khan, alongside senior officials from the Ministry of Law and Justice, Ministry of Finance, and other relevant departments.