FBR Fails to Enforce Court Order on Automated Tax Refunds

The Federal Board of Revenue (FBR) has once again come under scrutiny after failing to implement the court-mandated automated tax refund system, which has caused frustration among taxpayers and exporters awaiting long-pending refunds.

According to sources, despite repeated directives from the Islamabad High Court (IHC) to operationalize the fully automated system, the FBR has yet to ensure seamless processing of refund claims. The delay is significantly affecting exporters, small businesses, and taxpayers relying on timely reimbursements for smooth operations.

• The IHC had ordered FBR to develop and integrate an automated, transparent refund system to eliminate delays and human interference.

• The decision aimed to ensure fairness, efficiency, and real-time processing of refund claims.

• However, months after the court’s ruling, the system remains incomplete and inconsistent, leaving many refund cases unresolved.

• Exporters are among the hardest hit, with billions of rupees stuck in delayed refunds.

• Small and medium-sized enterprises (SMEs) face cash flow problems, forcing some to reduce production.

• Taxpayers complain about having to visit FBR offices repeatedly despite promises of a paperless, automated process.

Industry experts and business associations have expressed concerns over FBR’s failure to comply with the court order, stressing that:

• The delay undermines investor confidence.

• Pakistan risks losing competitiveness in global markets due to liquidity constraints faced by exporters.

• A transparent and automated refund mechanism is crucial for taxpayer trust and economic stability.

Legal experts suggest that the Islamabad High Court may seek a compliance report from FBR in the coming weeks. If delays persist, contempt of court proceedings could be initiated against officials responsible for non-implementation.

The government, meanwhile, is under pressure from trade bodies and the private sector to streamline tax refunds and ensure the digitalization of FBR systems without further delay.

The FBR’s inability to implement the automated tax refund system despite court orders continues to burden taxpayers and hinder Pakistan’s economic recovery. Without swift reforms and full digital integration, businesses will keep struggling with liquidity issues, ultimately affecting exports, employment, and growth.
For More  Visit: Nationbytes.pk