ISLAMABAD: Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to ensure that low-paid employees of Pakistan Television Corporation (PTV) are not burdened with excessive tax deductions at withholding stage.

The FTO on Wednesday further directed the FBR to implement these recommendations and findings in liaison with PTV’s management on the lines already followed by the management of Pakistan Broadcasting Corporation (PBC) and report compliance within 45 days.

The FTO order issued on Wednesday stated that an identical issue has already been dealt by the FTO in a complaint filed by an employee of the PBC, PTVs sister organization. In the said case during Investigation and Review proceedings, the FBR conceding the wrong being done has not only implemented the recommendations rather widely circulated the findings of this office among all concerned.

Tariq Iqbal, Secretary FBR stated that, in pursuance of FTO Recommendations dated Feb 24, 2022, IR Policy Wing of FBR has already issued instructions. It was now up to the IR Operations Wing and the relevant field offices to examine the status of “Master-Servant Relationship” on case-by-case basis.

In view of the facts, it has been established that the complainants, who have been hired by PTV as Supervisors, Translators over the last few decades as low-paid employees are entitled to the similar relief which has been allowed to the employees of PBC and other similar cases.

Excessive and harsh deduction of tax from their meager salaries u/s 153(1)(b) of the Income Tax Ordinance is against the dictates of law and nature of treatment being discriminatory, tantamount to maladministration.

The petitions were filed in terms of Section 10(1) of the Federal Tax Ombudsman Ordinance, 2000 (FTO Ordinance) against excessive and unjust practice of deducting income tax at 10-20 percent under section 153(1)(b) of Income Tax Ordinance (the Ordinance), from the salaries/wages of low-paid temporary/contractual employees of PTV, Headquarters Islamabad, treating them as services providers. The complainants demand tax treatment under the head salary, warranting tax deduction u/s 149.

Copyright Business Recorder, 2022