MULTAN: In a strongly worded letter addressed to Mr. Rashid Mahmood Langrial, Chairman of the Federal Board of Revenue (FBR), leading tax lawyers Anwar Kashif Mumtaz (President) and Mohammad Rehan Siddiqui (General Secretary) have expressed deep concern over the inefficiencies, red-tapism, and procedural bottlenecks prevailing at various field offices of the FBR, which they claim are harming compliant taxpayers and stalling business activity across Pakistan.
The letter, reflecting the grievances of multiple Bar members from across the country, points out that despite the government’s claims of digitization and reform, ground-level realities paint a different picture. The pre-suspension notices issued to taxpayers without proper verification and the arbitrary suspension of sales tax registration violate the government’s commitment to fostering a business-friendly environment, the letter states.
Referring to the Supreme Court’s directions in Commissioner Inland Revenue vs. Eagle Cable Pvt Ltd., the tax bar urged that input tax disallowance must be subject to proper verification under Section 11 of the Sales Tax Act before any drastic action is taken.
The letter also criticizes the inaction of Chief Commissioners in addressing representations against registration suspensions. The tax bar has proposed that these representations be filed through the IRIS portal to ensure transparency and accountability.
Another major concern highlighted is the chaotic implementation of electronic filing of appeals. Taxpayers from smaller cities are reportedly facing serious challenges, including the absence of Commissioners during video link hearings, which are instead conducted by unauthorized staff.
The lawyers further raised alarm over delays in approving applications for tax exemptions/credits under Section 100C and various Schedules of the Income Tax Ordinance, 2001 at CTO Karachi. The Commissioner responsible is allegedly often unavailable, causing significant delays and hardships for nonprofit organizations and trusts.
The letter ends with an appeal to the FBR Chairman for urgent intervention and the issuance of clear directions to field offices to address these longstanding issues.
The tax community has emphasized its willingness to cooperate and offer further input to resolve these matters in the interest of justice, transparency, and a more efficient tax system.
