FTO Orders Action Against FBR Officials Involved in Recent Tax Return Mishandling

The Federal Board of Revenue (FBR) is under scrutiny after the Federal Tax Ombudsman (FTO) referred a case of maladministration involving senior tax officials to FBR Chairman Rashid Langrial, sources told ProPakistani. The action follows a public complaint over the introduction of a controversial “estimated current market value” column in the 2025 wealth statement form, a change that was reversed after intervention from Prime Minister Shehbaz Sharif. Federal Tax Ombudsman (FTO), Dr. Asif Jah, directed the FBR chairman to examine the conduct of Members Inland Revenue (Operations and Policy) and the Director General (IT & DT), and to take appropriate action against those found responsible. The FTO also instructed the chairman to ensure that similar lapses do not occur in the future, sources added. According to the FTO’s findings, the senior FBR officers failed to respond to statutory notices or attend hearings related to the complaint, which was filed by tax lawyer Waheed Shahzad Butt. The FTO described their conduct as “unreasonable” and indicative of “neglect, inattention, and inefficiency,” meeting the legal definition of maladministration. Butt, speaking to ProPakistani, said, “The FBR top brass posted at the FBR Headquarters appear least interested in upholding the rule of law, fair play, and principles of natural justice. They seem unaware of the fundamental rights guaranteed to the taxpayers of Pakistan.” He called on the prime minister to overhaul the FBR and remove officials undermining the integrity of the tax system. The FTO’s order noted that the disputed column was added to the wealth statement format on September 23, 2025, without due process, causing hardship for taxpayers. After the prime minister took notice and formed a committee, the panel recommended removing the column. The FBR subsequently deleted the requirement from the tax return form available on its Iris portal, in line with the prime minister’s approval.