ByISLAMABAD, PAKISTAN: In response to a major data breach that led to a tax fraud of Rs 81.43 billion, the Federal Tax Ombudsman (FTO) has instructed the Federal Board of Revenue (FBR) to improve its cybersecurity measures. The breach, which resulted in fraudulent transactions and a tax loss of Rs 14.66 billion, exposed critical vulnerabilities in FBR’s data security infrastructure. The FTO has urged immediate action to secure taxpayer data and identify those responsible.
At a recent press conference, Almas Ali Jovindah, Advisor Legal & Media Wing, disclosed that taxpayer complaints against FBR have surged by 67% in 2024, with over 10,500 complaints filed so far, of which 9,900 have been resolved. Jovindah encouraged the business community to report instances of corruption by tax officials to the FTO, assuring them of protection from harassment.
The FTO has made substantial progress in taxpayer advocacy, refunding Rs 2 billion in delayed tax returns this year, a significant rise from last year.
Additionally, the FTO’s office conducted a record 31 own-motion investigations to address systemic issues within tax administration, alongside 117 outreach sessions to educate taxpayers on their rights. Pro Pakistani
Technological advancements have also improved the complaint resolution process, with virtual hearings now available for taxpayers globally. The FTO has recommended corrective actions to the FBR on several issues, including withholding tax deductions and disruptions caused by SRO 350(I)/2024, to create a more transparent and efficient tax environment.
These measures highlight the FTO’s commitment to taxpayer protection, accountability, and enhanced transparency within Pakistan’s tax system, setting new standards in tax administration.
