ISLAMABAD: The Federal Board of Revenue (FBR) Policy Wing should immediately address an issue of reduction in income tax liability, an admissible entitlement for pensioners, senior citizens and Shuhada family, for the tax return (Tax Year 2023) and check the computation of incorrect tax liability on higher side.

Tax lawyer Waheed Shahzad Butt, who has highlighted this anomaly, informed that the FBR Policy Wing is facing severe criticism for its failure to effectively address the issue of tax reduction on tax charged on Yield on Behbood Certificates/ Pensioner’s Benefit Account/ Shuhada Family Welfare Account under Code “930101” in the income tax return devised by FBR for Tax Year 2023.

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Waheed further added that despite the FBR’s responsibility to ensure fair and equitable taxation for all citizens, it has come to light that pensioners, senior citizens and Shuhada family members are being deprived of their rightful tax reduction entitlements. This failure to cater to the specific needs of this vulnerable segment of the population has drawn sharp criticism from various quarters.

Waheed told this correspondent that income tax reduction on tax charged on Behbood Certificates/ Pensioner’s Benefit Account in excess of applicable rate shall not exceed 5 percent of such profit in the light of Clause 6 of Part III of Second Schedule to the Income Tax Ordinance, 2001, while FBR has failed to incorporate this beneficial computation in the annual income tax return devised for TY-2023.

Pensioners, senior citizens and Shuhada, who have contributed significantly to the development of the nation, are entitled to certain tax incentives and rebates as a means of recognizing their lifelong efforts. However, the FBR Policy Wing’s inability to adequately address these matters has left many feeling neglected and frustrated. It has been revealed that the FBR’s tax return system is incorrectly computing tax liabilities on the higher side. This error has resulted in individuals being burdened with excessive tax payments, causing financial distress and further exacerbating the challenges faced by pensioners, senior citizens and Shuhada families.

FBR Policy Wing’s failure to address these issues demonstrates a lack of attention and commitment to ensuring fair taxation practices. As there are a series of instances of incompetency on the part of the FBR Policy wing, pressure mounts for a comprehensive review of the policy wing’s processes and systems to prevent such issues from recurring in the future and to facilitate the taxpayers of Pakistan, Waheed added.

Copyright Business Recorder, 2023

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Adnan Aziz Jul 17, 2023 11:26am
A fair demand. The present government is interested only in active (in-service) people who serve her interests.
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Ihsanullah Butt Jul 17, 2023 11:57am
A/m accounts must be exempted from all types of taxes
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Farjad Ahmed Jul 17, 2023 01:16pm
Dear sir, I appreciate your point of view But it is as if one of playing a flute to tame a donkey. I support your point of view but now I feel guilty that I voted for them an exceptionally wrong decision on my part. Regards
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Haleemeh Jul 17, 2023 05:58pm
All of females being widow taking disadvantages of tax exemption of even their children have become a white collar job holder None the less I have seen several widows holding properties in dha Lahore though children are abroad and exempted from taxes. I think govt should strictly bioficaye this thing. And take strict action against who are enjoying luxuries being widows
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Yousuf Ibnul Hasan Jul 18, 2023 12:22am
Senior Citizen are step child of this motherland. Specially private service Senior Citizen who work for bread and butter till the last day of their life and majority are buried by Social Welfare Organization. No pension, No graduaty and No Provident fund upon loosing job at Senior Citizens status.
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Faris Rahman Khan Jul 18, 2023 09:21am
If Pensioners must be taxed then the tax should be progressively reduced for higher age brackets such as 75-80, 80-85 and completely waived for those above 85. Not only would this be equitable as when persons reach these ages they get more disabled and dependent. Moreover the government's liability also lessens as the number of pensioners sharply decreases with ageing.
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Syed Munawwar Abbas Jul 18, 2023 10:09am
@Haleemeh, some of the widow's are living abroad and taking social benefits and visiting this poor country once an year to collect pension and left for Country of their choice. Secondly, several peopl kept working after retirement and also getting pension and other retirement benefits. So frustrating for tax payers of this country
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Mohammad Anwar Jul 18, 2023 02:51pm
Their should not be any tax on retired public and private sectors middle class employees.
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Azhar Nawaz Jul 18, 2023 06:54pm
Age of senior citizen should reduce to 55
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Muhammed Jul 18, 2023 09:09pm
Pension must be provided/given only to those retired employees who remain in Pakistan as a Pakistani & not to those who have either become foreign nationals or lives abroad on one pretext or other.
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Muhammed Jul 18, 2023 09:13pm
Scheme of allowing pensions must be abolished at once as it has become an unbearable burden on the government finances. It must be converted to gratuity as is prevalent in private sector.
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R.LRaja Jul 19, 2023 01:04pm
I m also trying but system is not calculating tax on yield of behbood/ Pensioner benefit account to the maximum of 5% for the year 2023, but calculating wrong tax to the maximum of 10% as per previous yrs rate.
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R.LRaja Jul 23, 2023 06:53am
Not updated yet. Waiting for system update by FBR
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