Pensioners, senior citizens, Shuhada’s families: FBR urged to address issue of reduction in income tax liability
ISLAMABAD: The Federal Board of Revenue (FBR) Policy Wing should immediately address an issue of reduction in income tax liability, an admissible entitlement for pensioners, senior citizens and Shuhada family, for the tax return (Tax Year 2023) and check the computation of incorrect tax liability on higher side.
Tax lawyer Waheed Shahzad Butt, who has highlighted this anomaly, informed that the FBR Policy Wing is facing severe criticism for its failure to effectively address the issue of tax reduction on tax charged on Yield on Behbood Certificates/ Pensioner’s Benefit Account/ Shuhada Family Welfare Account under Code “930101” in the income tax return devised by FBR for Tax Year 2023.
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Waheed further added that despite the FBR’s responsibility to ensure fair and equitable taxation for all citizens, it has come to light that pensioners, senior citizens and Shuhada family members are being deprived of their rightful tax reduction entitlements. This failure to cater to the specific needs of this vulnerable segment of the population has drawn sharp criticism from various quarters.
Waheed told this correspondent that income tax reduction on tax charged on Behbood Certificates/ Pensioner’s Benefit Account in excess of applicable rate shall not exceed 5 percent of such profit in the light of Clause 6 of Part III of Second Schedule to the Income Tax Ordinance, 2001, while FBR has failed to incorporate this beneficial computation in the annual income tax return devised for TY-2023.
Pensioners, senior citizens and Shuhada, who have contributed significantly to the development of the nation, are entitled to certain tax incentives and rebates as a means of recognizing their lifelong efforts. However, the FBR Policy Wing’s inability to adequately address these matters has left many feeling neglected and frustrated. It has been revealed that the FBR’s tax return system is incorrectly computing tax liabilities on the higher side. This error has resulted in individuals being burdened with excessive tax payments, causing financial distress and further exacerbating the challenges faced by pensioners, senior citizens and Shuhada families.
FBR Policy Wing’s failure to address these issues demonstrates a lack of attention and commitment to ensuring fair taxation practices. As there are a series of instances of incompetency on the part of the FBR Policy wing, pressure mounts for a comprehensive review of the policy wing’s processes and systems to prevent such issues from recurring in the future and to facilitate the taxpayers of Pakistan, Waheed added.
Copyright Business Recorder, 2023
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