The Lahore High Court on Wednesday directed Chairman Federal Board of Revenue (FBR) to ensure early disposal of appeals against recovery of income and sales tax notices. The court was hearing a set of petitions of different industries challenging notices of FBR for recovery of tax despite exemption under the law.
The court observed that directions had been issued to the FBR to evolve a policy for early disposal of the appeals pending before Commissioner Inland Revenue (Appeals) however they had not been complied with. FBR Chairman Tariq Pasha, who was present in the court, said rules were being made in light of the court's directions but there were some difficulties in the process which would be overcome soon.
When asked about the plan of using Computerized National Identity Cards (CNIC) numbers of citizens as National Tax Number (NTN), Pasha told the court that the plan would be implemented within next two months without the support of the National Database and Registration Authority (NADRA). The court observed that apparently unprofessionalism and lawlessness had prevailed in the FBR which was a hurdle in implementation the court's directions. Pasha sought time to ensure implementation of the court's directions and made rules for timely decision on the appeals.
"If you cannot manage things then step down," the court asked the chairman and adjourned further hearing till first week of March, 2018, and sought compliance report from the FBR chairman. Representing some of the petitioners, Advocate Mohsin Virk argued before the court that the Commissioner Inland Revenue had been delaying decisions deliberately on the appeals seeking stay against the recovery of taxes which was forcing the industries to approach the court.
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