Swift issuance of refunds: KTBA urges FBR chairman to simplify procedure

KARACHI: Karachi Tax Bar Association (KTBA) has requested the Chairman, Federal Board of Revenue (FBR), to introduce a simplified procedure for the issuance of Section 7E refunds with no delays, following the decision of the Federal Constitutional Court (FCC).

Chairman FBR Rashid Mahmood Langrial during his visit to Karachi held a meeting with the KTBA delegation led by President KTBA Mehmood Bikiya at Customs House Karachi on Thursday.

The delegation raised alarms over ongoing problems with the online return, saying that the FBR portal is scheduled to go offline for two-day system maintenance and that only 50 days remain until the filing deadline. The KTBA delegation urged the board to expedite technical resolutions to prevent a return compliance crisis.

The delegation heavily reiterated its demand for a simplified, system-based refund mechanism for taxes collected under Section 7E over the past three financial years, adding that manual returns revision for Section 7E refunds is an impractical drain on time.

The KTBA delegation urged the FBR Chairman to implement an automated system to ensure rapid processing and the immediate release of stuck refunds. The delegation requested to be taken on board during the faceless system execution phase.

In response, the FBR Chairman agreed to directly connect the KTBA with the specific FBR team actively working on the faceless system.

During the meeting, the KTBA warned that Pakistan’s complex tax compliance environment remains a severe deterrent to foreign direct investment, stressing the need for a more investment-friendly system. The FBR Chairman acknowledged these structural hurdles, assuring the delegation that the board is working on targeted reforms to provide maximum facilitation to foreign investors.

During the meeting, the delegation also commended the FBR Chairman for successfully meeting revenue targets and expressed optimism regarding the FBR’s new Fixed Tax Scheme for small businesses and retailers.

The FBR Chairman emphasized that while the authority is engaging with trade bodies, the direct support of the KTBA remains critical to the scheme’s viability. The Chairman FBR further briefed the delegation on the FBR’s technological modernization to streamline administrative operations.

Alongside President Mahmood Baikiya, the KTBA delegation included Muhammad Zubair, Rehan Siddique, Shamsuddin, Anwar Kashif, and other senior members of the bar.

Copyright Business Recorder, 2026