ISLAMABAD: Federal Tax Ombudsman (FTO) Muhammad Zafar-ul-Haq Hijazi has taken serious notice of a crucial public interest complaint highlighting alleged maladministration and willful non-implementation of binding orders by the Federal Board of Revenue (FBR) on the issue of turning manual tax return filers as Inactive despite filing of electronic return for Tax Year 2025.
It is reliably learnt that FTO office has ordered a formal investigation into the matter and issued notices to the Secretary Revenue Division, Member-IR (Operations), CEO PRAL, and Director General (IT&DT), directing them to submit their comments.
The proceedings stem from a complaint filed by LTBA Public Interest Litigation Committee, who approached the FTO in his capacity as a taxpayer, whistleblower, and public interest litigant. The complaint alleges that despite clear and binding findings of the FTO and the issuance of FBR Cir. No. 6 of 2025–26, lawful manual return filers continue to be denied their legitimate “Active Taxpayer/Filer” status.
Sources told FTO had earlier categorically held that manual return filers are legally entitled to file paper returns and that failure of FBR officers to facilitate such taxpayers constitutes maladministration. Subsequently, FBR itself acknowledged these issues through Circular No. 6 of 2025–26, extending filing timelines and directing field formations to provide legal and technical assistance to manual filers. However, the complainant contends that despite full compliance with the FTO’s orders and FBR’s own circular, a senior citizen widow taxpayer was unlawfully denied filer status, resulting in financial loss, higher withholding taxes, and harassment. The complaint asserts that such actions amount to willful defiance of law, contempt of the FTO, and maladministration as defined under Section 2(3) of the FTO Ordinance, 2000.
Taking cognizance of the matter, the FTO has sought explanations from the highest operational and IT authorities of FBR, signaling that accountability may extend beyond field officers to policy and system-level decision-makers. FTO’s move as a strong message against institutional resistance and a reaffirmation of the Ombudsman’s constitutional role in protecting taxpayer rights, enforcing rule of law, and curbing arbitrary exercise of authority within revenue administration: LTBA-PILC added.
Copyright Business Recorder, 2026
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