PTBA urges FBR to fix digital tax system, ensure legal compliance

The Pakistan Tax Bar Association (PTBA) has called on the Federal Board of Revenue (FBR) to address shortcomings in its digital tax infrastructure, warning that existing gaps could affect the effectiveness of ongoing digitisation efforts.

In a formal submission to FBR Chairman Rashid Mahmood Langrial, the association highlighted issues related to system design, governance and alignment with statutory provisions, and presented a set of 12 recommendations.

The PTBA said there are inconsistencies between digital processes and legal requirements, incomplete integration of Harmonised System (HS) codes and a lack of formal mechanisms for correcting digital records.

The Pakistan Tax Bar Association recommended that all laws, rules and statutory regulatory orders be fully incorporated into the IRIS system instead of partial implementation. The association also proposed a comprehensive audit of the system’s compliance with legal provisions, starting with SRO 297(I)/2023, followed by corrective measures.

The association called for a roadmap to integrate HS codes across return annexures and invoicing modules, and suggested reviewing units of measurement used in sales tax returns to ensure consistency with the Sales Tax Act, 1990.

PTBA also proposed establishing a structured mechanism for digital corrections and amendments with audit trails, along with a system to track and resolve technical issues.

It suggested a transparent and multi-tiered grievance redressal framework with access to Pakistan Revenue Automation Limited (PRAL) technical teams, FBR IT officials and defined escalation channels.

The association recommended a time-bound resolution process for system complaints within 48 to 72 hours, and called for restoring an independent Member IT position within the FBR to strengthen oversight.

It also proposed standard operating procedures between the FBR and Pakistan Revenue Automation Limited for handling disputes and system issues, along with periodic public disclosure of system performance indicators such as uptime, error rates and complaint resolution timelines.

PTBA further urged the establishment of a clear accountability framework defining the roles of FBR and PRAL in managing the digital tax system.