PTVC employees’ complaints: FBR implements FTO’s recommendations

ISLAMABAD: The Federal Board of Revenue (FBR) has implemented the Federal Tax Ombudsman’s (FTO’s) recommendations against excessive income tax deductions from low-paid employees working in the Pakistan Television Corporation (PTVC).

On the recommendations of FTO, FBR has accepted the plea of the low -paid of PTV employees regarding excessive income tax deduction from salaries.

The complaints were filed against excessive and unjust practice of deducting income tax@10/20 per cent under section 153(1) (b) of the Income Tax Ordinance from the salaries/ wages of low-paid/ temporary/ contractual employees of the Pakistan Television Corporation, Headquarters Islamabad.

Previously, they requested to PTVC/ FBR for deducting their taxes U/S 149 of the Income Tax Ordinance 2001 but they did not receive any positive response. Thus, they took up the matter with the FTO.

The major stance of PTV before the FTO was that the complainants had been engaged as service providers to whom remunerations were paid as per fee structure approved by the Board of Governors. Moreover, the complainants were not governed by “PTV employees Service Rules”. However, those individuals were employed full-time and deputed to work in various shifts as any other employees working in the PTV.

The FTO in line with parallel cases had made recommendations to FBR in the following terms: i. Ensure that the low-paid complainants/ employees of PTV are not burdened with excessive tax deductions at the withholding stage; ii. Implement these recommendations and findings in liaison with PTV’s management on the lines already done by the management of PBC.

Tax Ombudsman’s Order also stated that the complainants, who have been hired by PTV as Supervisors, Translators over the last few decades as low paid employees are entitled to similar relief which had been allowed to the employees of PBC and other similar cases. Excessive and harsh deduction of tax from their meagre salaries U/S 153(1)(b) of the Ordinance is against the dictates of law and nature of treatment being discriminatory tantamount to maladministration in terms of section 2(3) (i) (b) of the FTO Ordinance, 2000.”

The FBR, later on, filed representations before the president against FTO’s recommendations.

However, during proceedings at presidency, the complainants informed that FBR has implemented the findings of learned FTO. As the grievance of the complainants stood redressed; therefore, the representations have been accordingly disposed of by the president’s office.

Copyright Business Recorder, 2023