BR100 Decreased By (-1.08%)
BR30 Decreased By (-1.23%)
KSE100 Decreased By (-0.85%)
KSE30 Decreased By (-1.61%)
AGHA 6.11 Decreased By ▼ -0.07 (-1.13%)
BECO 4.12 Decreased By ▼ -0.11 (-2.6%)
BML 61.59 Decreased By ▼ -0.25 (-0.4%)
BOP 30.94 Decreased By ▼ -0.76 (-2.4%)
CNERGY 12.10 Increased By ▲ 0.04 (0.33%)
CSIL 5.65 Increased By ▲ 0.02 (0.36%)
FCCL 58.05 Decreased By ▼ -0.66 (-1.12%)
FFL 13.35 Decreased By ▼ -0.12 (-0.89%)
FNEL 1.16 Decreased By ▼ -0.01 (-0.85%)
KEL 6.11 Decreased By ▼ -0.03 (-0.49%)
KOSM 5.61 Decreased By ▼ -0.05 (-0.88%)
LOTCHEM 24.43 Decreased By ▼ -0.39 (-1.57%)
MLCF 100.04 Decreased By ▼ -2.05 (-2.01%)
NBP 175.92 Decreased By ▼ -3.74 (-2.08%)
NCPL 51.73 Increased By ▲ 1.68 (3.36%)
NPL 53.95 Increased By ▲ 1.05 (1.98%)
OGDC 312.89 Decreased By ▼ -3.35 (-1.06%)
PACE 9.22 Increased By ▲ 0.01 (0.11%)
PAEL 33.48 Decreased By ▼ -0.54 (-1.59%)
PIBTL 13.19 Decreased By ▼ -0.23 (-1.71%)
PPL 217.96 Decreased By ▼ -3.34 (-1.51%)
PRL 85.55 Increased By ▲ 0.95 (1.12%)
PTC 47.64 Decreased By ▼ -0.74 (-1.53%)
SSGC 22.60 Decreased By ▼ -0.34 (-1.48%)
TBL 9.16 Decreased By ▼ -0.14 (-1.51%)
TELE 7.15 Increased By ▲ 0.08 (1.13%)
TPL 25.48 Decreased By ▼ -0.38 (-1.47%)
TPLP 13.36 Increased By ▲ 0.25 (1.91%)
TREET 24.56 Decreased By ▼ -0.43 (-1.72%)
TRG 53.41 Decreased By ▼ -0.62 (-1.15%)

ISLAMABAD: The Federal Tax Ombudsman (FTO), Zafar ul Haq Hijazi, has issued a strict order against the Federal Board of Revenue’s (FBR) Sales Tax Wing after the Board’s persistent failure to unlock a provisionally submitted sales tax return caused severe prejudice to a registered taxpayer.

It is reliably learnt that FTO directs the Chief Sales Tax (Operations) to immediately resolve the system error on merits and report compliance.

READ ALSO: Paying ST without any adjudication proceedings: FBR officials accused of pressuring ST registrants

When contacted Azhar Shifique Manj, the CFO of the complainant company told this correspondent that the company had submitted its monthly sales tax return for December 2025 provisionally through the IRIS 2.0 portal. Due to a technical glitch in Annexure-H1 of the IRIS 2.0 portal, wherein invoices were not being fetched, causing a negative figure to appear in the annexure, the return was locked by the system and remained frozen in provisional draft status.

As a cascading consequence, the sales tax returns for January 2026 and February 2026 could not be filed and the complainant’s entire sales tax registration was rendered inactive.

Despite the complainant submitting a formal written request to the Secretary (ST-Operations), FBR, and making repeated personal visits to the concerned offices, the department took no corrective action whatsoever. No response was filed by department.

The Second Secretary who appeared at the hearing on May 25, 2026 could only commit to seeking a report from the field office, Azhar Manj added.

The FTO categorically held that neither responding to the written request of the taxpayer, nor rectifying the system error faced during filing of the sales tax return for December 2025 and subsequent months, constitutes maladministration within the meaning of Section 2(3)(i)(a) & (ii) of the FTO Ordinance. Accordingly, FBR has been directed to instruct the Chief Sales Tax (Ops) to resolve the matter on merit.

Waheed Shahzad Butt, who appeared for the complainant, spoke candidly about the systemic nature of the problem. He stressed that when a sales tax registration is made inactive as a result of FBR’s own failure to fix a technical error, the taxpayer is effectively stripped of the ability to operate commercially, unable to issue or receive valid tax invoices, barred from input tax adjustments and exposed to penalties for non-filing through no fault of their own.

Copyright Business Recorder, 2026

Comments

200 characters remaining