The Federal Board of Revenue (FBR) has not implemented the Islamabad High Court’s directive for an automated income tax refund system under Section 170A of the Income Tax Ordinance, 2001, and no allocation for the initiative appears in the FBR’s annual procurement plan, according to a news report.
The IHC’s order aimed to simplify tax refunds and reduce direct interaction between taxpayers and officials. A report titled “Findings and Recommendations of Committee for Effective Enforcement of Section 170A” was submitted to the court, outlining measures for implementation.
Tax experts say that despite assurances from the FBR’s Member (Policy), no progress has been made and the FBR’s inaction is concerning, particularly given ongoing government efforts to digitise tax processes, and undermines transparency and efficiency.
The IHC had noted that the report appeared comprehensive and that the FBR intended to implement recommendations using a USD 25 million international donor loan. The court disposed of the petition but allowed the petitioner to approach it again if implementation does not follow.
