ISLAMABAD: In a notable example of administrative responsiveness, the Federal Board of Revenue (FBR) Islamabad field formation has processed a long-pending tax refund within just three weeks following directives from the Federal Tax Ombudsman (FTO), marking swift compliance with an official order.
According to sources, the case involved a taxpayer’s pending refund claims from Tax Years 2017 to 2023, which had remained unresolved despite repeated follow-ups.
The taxpayer eventually approached the FTO after facing prolonged inaction from the concerned tax office.
The FTO, led by Zafar-ul-Haq Hijazi, examined the complaint, departmental responses, and hearing proceedings, concluding that the delay amounted to maladministration.
In its findings, the ombudsman observed inconsistencies in departmental behavior, noting that refunds were often adjusted quickly against tax demands while similar taxpayer claims were left pending without justification.
The FTO further highlighted that meaningful action was only initiated after its intervention, including issuance of a notice under Section 170(4) of the Income Tax Ordinance. It warned that, without oversight, the taxpayer’s legitimate claim could have remained unresolved for an extended period.
In its order dated April 8, 2026, the FTO directed the FBR to immediately process the refund and instructed all field formations to prioritize pending refund claims before initiating any coercive recovery measures against taxpayers.
Tax lawyer Waheed Shahzad Butt, who represented the taxpayer, termed the outcome a strong affirmation of institutional accountability. He stated that the case demonstrates the effectiveness of the FTO as a forum for taxpayer relief and emphasized that administrative delays can be overcome when oversight mechanisms function properly.
He further noted that the FBR’s compliance reflects respect for the ombudsman’s authority and expressed hope that such timely resolution of refund cases would become standard practice across all field formations.
The development is being viewed as an important precedent underscoring the role of the FTO in ensuring taxpayer protection and promoting fairness in administrative tax procedures.






