The Federal Board of Revenue’s (FBR) Policy and Operation wings have failed to justify their actions before the Federal Tax Ombudsman (FTO), following complaints that the FBR’s push for online business integration has resulted in significant costs for taxpayers and potential violations of privacy.
According to a news report, the case stems from the FBR’s forceful implementation of SRO 428, which mandates that businesses be integrated into the FBR’s e-computerized system.
The complaint, filed by a taxpayer from Lahore, claims that the FBR’s approach violated privacy laws and imposed undue financial burdens. The complainant referred to the Supreme Court’s ruling in PLD 2021 SC1, which called for disciplinary and criminal actions against tax officials who breach taxpayer data privacy under Section 216.
Despite repeated reminders, FBR officials have not responded to the allegations. As a result, the FTO has ordered an investigation into the matter.
The FTO’s inquiry could provide relief to taxpayers struggling to comply with the FBR’s demands, which have raised concerns over privacy, particularly regarding the handling of fiscal data by private companies under the FBR’s online system.
The complainant also raised concerns about the legal basis for allowing private companies to manage taxpayer information. They have requested that the FBR provide full documentation and clarification on the selection process of these private companies, emphasising the need for transparency in avoiding favoritism and ensuring compliance with privacy laws.
Additionally, the FBR is planning to issue two more licenses to private companies to help integrate retailers and other businesses into its electronic invoicing system.
This brings the total number of private companies involved in this process to three, with Pakistan Revenue Automation Limited (PRAL) providing these services free of charge. PRAL will act as the licensed integrator for the Point of Sales (POS) system.
