The Federal Tax Ombudsman (FTO) has revealed that several medical colleges and universities have been benefiting from unauthorized tax exemptions, causing an estimated loss of Rs7-9 billion to the national exchequer.
Senior FTO officials disclosed during a media briefing that individual cases of undue tax benefits ranged between Rs 700 million to Rs 900 million per institution, collectively accumulating a significant shortfall in tax revenue.
In a recent case, the FTO recommended that the FBR rectify unjustified withholding tax deductions applied by the Punjab Council of Arts and Culture, aligning tax practices with the Income Tax Ordinance and protecting low-income earners from excessive tax burdens.
The FTO has also raised concerns over FBR’s SRO 350(I)/2024, which disrupted sales tax filings, affecting business operations. The FTO urged the FBR to simplify filing procedures, improve the IRIS system, and develop automated processes to support compliance.
Additionally, the FTO highlighted cybersecurity vulnerabilities in the FBR’s systems after investigating a data breach that led to Rs81.43 billion in fraudulent transactions and a tax loss of Rs 14.66 billion. The FTO has called for immediate enhancements to data security to protect taxpayer information and prevent future cyberattacks.
