President not imposed any restriction on statutory powers: FTO clarifies

ISLAMABAD: The Federal Tax Ombudsman Secretariat (FTO) Friday clarified that President of Pakistan has not imposed any restriction on the FTO’s statutory powers relating to Own Motion or Inspection based notices or proceedings.

The FTO wishes to clarify news reports in certain section of the media in connection with a decision of the President of Pakistan in a representation preferred by the Federal Board of Revenue (FBR) against findings and directions issued by the FTO to the tax authorities in Own Motion and Inspection based proceedings before the FTO.

It is clarified that President of Pakistan has neither set aside or annulled any decision of the FTO nor imposed any restriction on the FTO’s statutory powers relating to Own Motion or Inspection based notices or proceedings.

The President of Pakistan, however, has only modified the relevant decisions to the limited extent that, where defects or irregularities have been identified through above referred Own Motions investigations and Inspections the responsibility for determining the detailed and appropriate procedure for effective, transparent, and lawful corrective action shall rest with the FBR.

The President of Pakistan’s decision is fully in conformity with the law. It supports and supplements and validates the lawful exercise of Own Motion and Inspections based proceedings of the FTO. The Implementation Wing of the FTO Secretariat is taking up the matter with Federal Board of Revenue to proceed further in accordance with the decision of the President of Pakistan.

Copyright Business Recorder, 2026