DRAP STRN deregistration case: FTO orders swift conclusion

ISLAMABAD: Federal Tax Ombudsman (FTO) has instructed the Large Taxpayers Office (LTO), Islamabad to promptly conclude proceedings in the matter of de-registration of Sales Tax Registration Number (STRN) application of Drug Regulatory Authority of Pakistan (DRAP).

The complaint was filed under Section 10(1) of the FTO Ordinance, 2000, citing prolonged inaction by the tax authorities despite clear directions from the Appellate Tribunal Inland Revenue (ATIR) to reconsider the case afresh.

The Complainant pointed out that no decision had been made on their statutory application for de-registration, while notices continued to be issued for tax compliance, resulting in procedural confusion and administrative hardship.

FTO observed that the delay in implementing the Tribunal’s order and inaction on the de-registration request fell within the definition of maladministration as per Section 2(3) of the FTO Ordinance. The matter is further complicated by a legislative amendment that potentially exempts regulatory and licensing bodies like DRAP from certain taxes under the Islamabad Capital Territory (Tax on Services) Ordinance, 2001.

The LTO in its response claimed that remand proceedings were underway, and a hearing notice had already been issued. However, no final order had been passed. The complainant’s authorized representative confirmed receipt of the notice but emphasized that the application for de-registration had still not been adjudicated.

Taking serious note of the administrative delays, the FTO has directed the Chief Commissioner,

LTO Islamabad to expedite the conclusion of de novo proceedings in line with the Tribunal’s remand order and decide the complainant’s pending application for de-registration in accordance with applicable laws.

The LTO has been asked to submit a compliance report within 45 days. This direction by the FTO reflects a continued push for institutional responsibility and fair treatment of taxpayers by ensuring due process is not sacrificed at the altar of bureaucratic inertia.

Copyright Business Recorder, 2025