FBR procurement plan: IHC-ordered automated IT refund system missing

ISLAMABAD: Despite assurance from Member (Policy) Federal Board of Revenue (FBR), Islamabad High Court’s landmark judgment for effective enforcement of an automated income tax refund system under Section 170A of the Income Tax Ordinance, 2001 has not been implemented and no provision has been provided in the annual procurement plan released by the FBR.

The court’s directive aimed to facilitate taxpayers and minimise interaction with tax functionaries when there is an issue of returning taxpayer money in the shape of refund, but the FBR has failed to take concrete steps in this regard. It is reliably learnt that a landmark order issued by IHC remained unimplemented by the FBR despite lapse of considerable time.

Automated income tax refund system: FBR has failed to enforce IHC’s directive

When contacted tax lawyer Waheed Shahzad Butt who has argued the case before IHC told Business Recorder that a report titled “Findings and Recommendations of Committee for Effective Enforcement of Section 170A” was submitted to the IHC, outlining comprehensive recommendations for implementation. However, despite assurances from Member (Policy) FBR that these recommendations would be implemented, no progress has been made till date.

Waheed Butt further added that FBR’s inaction is particularly surprising given the government’s efforts to digitize tax processes. The failure to implement the automated refund system as directed by the IHC raises concerns about the FBR’s commitment to transparency and efficiency. The FBR’s lack of progress on this front is a missed opportunity to streamline tax processes and improve the overall taxpayer experience.

This will not only enhance transparency and efficiency but also demonstrate the FBR’s commitment to upholding the rule of law and respecting the directives of the judiciary, Waheed added.

IHC order states: “The FBR has submitted a report. The report and recommendations appear fairly comprehensive, and the Member (Policy) FBR appearing today has stated that these recommendations will be implemented in accordance with the USD 25 million loan from an international donor agency.” The objective of this petition seems to have been achieved. The petition is accordingly disposed of, leaving it open for the petitioner to approach the Court again if the recommendations are not implemented, the IHC ordered.

Copyright Business Recorder, 2025