ISLAMABAD: The Federal Board of Revenue (FBR) has reportedly denied “Active Taxpayer” status to individuals who filed manual income tax returns for Tax Year 2024, sparking criticism from tax experts and legal professionals.
According to tax specialists, the FBR’s action violates binding directives of the Federal Tax Ombudsman (FTO) as well as FBR Circular No. 6 of 2025-26, which explicitly protects the legal rights of manual return filers. Experts say the statutory orders, internal circulars, and taxpayer rights appear to be treated as discretionary, subject to the whims of field officers.
When contacted, tax lawyer Waheed Shahzad Butt described the FBR’s conduct as deliberate, malafide, and contemptuous. He stressed that the issue is not a matter of technical confusion but represents institutional defiance of law.
The FBR itself issued Circular No. 6 of 2025-26, which recognised the plight of erstwhile manual return filers and extended the filing deadline to 30th November 2025 under Section 214A,” Butt noted. The circular also mandated FBR field offices to provide free legal and technical assistance, including access to lawyers for taxpayers.
Despite this clear legal framework, Butt alleged that FBR officials have blocked filer status, ignored repeated representations, and refused to implement FTO directions, effectively penalizing taxpayers who have acted lawfully. This is not about an oversight; it is about punishing a taxpayer for no fault of his own, he added.
The controversy raises questions about the FBR’s compliance with its own circulars and the authority of the FTO, while highlighting ongoing challenges for taxpayers navigating Pakistan’s tax system.