FBR clears long-pending refund in three weeks after FTO order

The Federal Board of Revenue (FBR) Islamabad field formation processed a long-pending tax refund within three weeks following an order by Federal Tax Ombudsman Zafar ul Haq Hijazi.

According to a news report, the case involved a taxpayer seeking an adjustment of refund claims for Tax Years 2017 to 2023 against outstanding tax liabilities. Officials said the taxpayer had approached the department earlier but did not receive a response, leading to a complaint before the FTO.

After reviewing the complaint, departmental submissions and hearing proceedings, the FTO found the delay to be a case of maladministration. The ombudsman noted that the department acted only after formal notices were issued by the FTO.

In an order dated April 8, 2026, the FTO directed the FBR to immediately process the refund and issue instructions to field formations to resolve pending refund claims before initiating recovery proceedings against taxpayers.

The order also highlighted that refund adjustments were being processed selectively, while similar requests from taxpayers remained unaddressed.

Following the directive, the Islamabad field formation completed the refund process within three weeks.

The FTO emphasised that pending refund claims should be resolved in a timely manner and should not coincide with coercive recovery measures.