FBR Strengthens Oversight on Sales Tax Collection Through Bank Accounts

The Federal Board of Revenue (FBR) of Pakistan has taken a step towards a more regulated system for collecting sales tax and federal excise duty (FED) through bank attachments.

New Guidelines Prioritize Taxpayer Rights:

These new measures require FBR field offices to obtain approval from designated committees before attaching bank accounts for tax recovery. This ensures due process and safeguards taxpayer rights.

Composition of Approval Committees:

The FBR has mandated the formation of field committees in each region. These committees, led by the Chief Commissioner of Inland Revenue, will comprise two senior Commissioners and will be responsible for reviewing and approving all bank account attachment actions.

Following Due Process:

The new guidelines emphasize adherence to legal procedures. Bank account attachments can only proceed if:

  • There’s no court stay order.
  • No restraining order exists from the Commissioner IR (Appeals) or the Tribunal.

Proper Communication and Legal Considerations:

  • Tax notices must be served lawfully.
  • Taxpayers must have the opportunity to be heard before decisions are made.
  • Recovery efforts must cease if a restraining order is received.

Promoting Efficient Legal Action:

Zonal Commissioners are advised to exercise sound judgment when escalating cases to higher courts. This ensures that only cases with strong legal merit reach higher judicial platforms, reducing unnecessary strain on the legal system.

Building Trust Through Transparency:

These new FBR guidelines highlight a commitment to a structured and fair approach to tax collection. By prioritizing legal compliance and administrative efficiency, the FBR aims to build trust with taxpayers and ensure all recovery actions are conducted within legal boundaries and good governance principles.

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