President rejects FBR presentation against FTO order

Islamabad, Pakistan - President Asif Ali Zardari has officially rejected a representation submitted by the Federal Board of Revenue (FBR) challenging a landmark order issued by the Federal Tax Ombudsman (FTO). This decision upholds the FTO's mandate for complete transparency in tax assessment proceedings and the provision of tax records to aggrieved taxpayers.

The dispute originated from a complaint lodged by a non-resident taxpayer against the Tax Office in Islamabad for refusing to release tax records, including notices, order-sheets, and assessment documents, pertaining to the 2020 tax year. In response to this complaint, the FTO ruled that taxpayers possess a fundamental constitutional right to obtain copies of their tax records, as per Article 19-A of the Constitution, and instructed the authorities to provide these records within fifteen days.

Instead of honoring the FTO's order, the FBR opted to lodge a representation before the President, attempting to obstruct the disclosure of the proceedings against the taxpayer. However, the President has unequivocally dismissed the FBR's representation, stating, "No infirmity has been pointed out in the impugned decision of the learned FTO.

The same is accordingly maintained. The representation is dismissed." This dismissal underscores the importance of transparency in Pakistan's tax administration and signals a significant shift in fostering accountability and public trust in the taxation system. A legal representative of the taxpayer, Waheed Shahzad Butt, expressed appreciation for the President's decision, highlighting it as a crucial reform measure.

This development not only bolsters the constitutional right to information but also aims to curb the culture of secrecy that has plagued the tax system, thereby paving the way for more open and accountable tax proceedings nationwide.