Federal Tax Ombudsman (FTO) has called for immediate and decisive action to secure taxpayer data in Pakistan following a serious cybersecurity breach, pressing Federal Board of Revenue (FBR) to strengthen its cybersecurity protocols to prevent future attacks and identify those responsible.
FTO launched an investigation after the breach resulted in approximately Rs. 81.43 billion in fraudulent transactions and an estimated tax loss of Rs. 14.66 billion. The investigation highlighted significant vulnerabilities within FBR’s cybersecurity framework, prompting demands for more robust data protection measures.
Complaints against FBR have surged, with a 67% increase in cases filed by taxpayers to FTO in 2024 compared to the previous year. Almas Ali Jovindah, Advisor Legal & Media Wing, announced these figures during a recent press conference, noting that the FTO Secretariat received 10,515 complaints over the past ten months, resolving 9,900 of them—a notable improvement in complaint resolution rates.
Jovindah emphasized that action against corrupt tax officials, particularly those involved in bribery, is contingent on formal complaints filed by the affected parties. Encouraging the business community to come forward without fear, he assured that FTO remains committed to addressing taxpayer grievances.
Through proactive measures under Section 33 of FTO Ordinance, FTO has streamlined its dispute resolution processes. Jovindah highlighted that, in just ten months, FTO facilitated Rs. 2.00 billion in tax refunds, a substantial increase compared to Rs. 17.742 billion in the previous year. FTO Dr. Jah has also spearheaded 31 own-motion investigations targeting systemic issues in the tax administration, reaffirming the agency’s dedication to taxpayer protection.
Jovindah further highlighted FTO’s efforts to increase accessibility through technological advancements. The introduction of paperless processes and remote hearings via custom Zoom links has made it easier for taxpayers, both in Pakistan and abroad, to participate in proceedings. This has benefited individuals in the United States, Canada, Saudi Arabia, and China.
In a recent case, FTO issued recommendations to FBR addressing improper withholding tax deductions by the Punjab Council of Arts and Culture. This intervention ensured compliance with the Income Tax Ordinance, sparing low-income individuals from undue financial strain.
FTO has also urged FBR to resolve issues stemming from SRO 350(I)/2024, which had disrupted sales tax filings and business operations. The ombudsman called for a more streamlined filing process, improved guidelines, and updates to the IRIS system. Proposals for an automated system to acknowledge mutual transactions between buyers and sellers underscore FTO’s focus on efficiency and fairness.
With these ongoing reforms, FTO is reaffirming its commitment to transparency, accountability, and the protection of taxpayer rights. These strategic actions reflect FTO’s drive to set new standards for efficiency and fairness within Pakistan’s tax administration, Jovindah concluded.
