The Islamabad High Court’s (IHC) directive for the implementation of an automated income tax refund system remains unfulfilled, as the Federal Board of Revenue (FBR) has yet to take concrete steps to enforce it, Business Recorder reported.
The order, aimed at reducing taxpayer interaction with tax officials and streamlining the refund process, has seen no significant progress despite a considerable passage of time.
A report titled Findings and Recommendations of Committee for Effective Enforcement of Section 170A of the Income Tax Ordinance 2001 was submitted to the IHC, outlining a comprehensive plan for implementation.
However, tax lawyer Waheed Shahzad Butt, representing the petitioner in the case, confirmed that the FBR has failed to act on the recommendations despite assurances from its Member (Policy).
Butt expressed concern over the FBR’s inaction, particularly given the government’s broader push for digitalisation in tax administration. He highlighted that failure to implement the automated refund system not only hampers transparency but also raises doubts about the FBR’s commitment to efficiency and judicial compliance.
He further stated that adopting automation would not only streamline the refund process but also reinforce the FBR’s dedication to upholding the rule of law.
In its order, the IHC noted that the FBR had committed to implementing the recommendations under a proposed $25 million loan from the World Bank.
The court observed that while the petition’s objective appeared to have been met in principle, the petitioner retained the right to approach the court again if the recommendations were not enforced.
Despite the clear judicial directive, the FBR’s delay in executing the automation plan continues to impede progress, leaving taxpayers waiting for reforms that could enhance efficiency and transparency in the tax refund process.
