ISLAMABAD: The Federal Tax Ombudsman (FTO) has decided to conduct an investigation against the Federal Board of Revenue (FBR) for wrong computation in reduction of income tax liability on account of admissible tax relief available to pensioners, senior citizens and members of Shuhada families, for the tax return (Tax Year 2023).

It is reliably learnt that on the basis of complaint moved by a senior retired Army officer through tax lawyer Waheed Shahzad Butt, the office of the FTO had issued notice to the secretary Revenue Division and FBR Members and stated “whereas the mentioned complaint has been filed by the petitioner, and whereas the FTO has ordered to conduct an investigation. Now therefore you (tax officials) are required to submit reply to the allegations contained in the complaint by July 31, 2023 as required under Section 10(4) of the FTO Ordinance, 2000.”

The FTO will probe the allegations of maladministration as to why the FBR’s system is computing wrong income tax liability with incorrect rebate available to pensioners, senior citizens and members of Shuhada families, for the tax year 2023.

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 the FBR for Tax Year 2023.

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 members of Shuhada families are being deprived of their rightful tax reduction entitlements.

Copyright Business Recorder, 2023