FBR Establishes Committee to Expedite Pending Income Tax Refunds

The Federal Board of Revenue (FBR) in Islamabad, Pakistan, has established a committee to address pending income tax refunds and propose reforms for the electronic issuance of refunds. The move aims to streamline and expedite the refund process, as outlined in Section 170A of the Income Tax Ordinance, 2001.

Key points regarding the change in SEO (Special Economic Zone) include:

1. Committee Composition:
   • The committee is chaired by Arshad Nawaz Chheena, Chief (Revenue Operations)/CITRO, IR Operations Wing, FBR HQ, Islamabad.
   • Other members include Tauqeer Ahmad, Chief IR (BPR), IT Wing, FBR HQ, Islamabad; Irfan Khan, Commissioner Inland Revenue, Zone-IV, Large Tax Office (LTO), Islamabad; and Muhammad Sajid Ahmad, Secretary (Income Tax Policy), IR Policy Wing, FBR HQ, Islamabad.
2. Focus on Electronic Processing:
   • The committee’s primary focus is on enforcing Section 170A of the Income Tax Ordinance, 2001, which deals with electronic processing and issuance of refunds by the Board.
3. TORs (Terms of Reference):
   • The committee will review and examine refund applications that have not been processed within legally mandated timeframes.
   • It will propose reforms to eliminate delays in processing pending refund applications, including suggestions for improving the conduct of officials.
   • Additionally, the committee will provide suggestions for the prompt resolution of refund applications under Section 171 of the Income Tax Ordinance, 2001, covering guidelines for compensation eligibility.
   • The committee is tasked with developing the necessary Change Request Form (CRF) blueprint for the development of essential software.
   • The committee is expected to furnish its findings and recommendations within a 45-day timeframe from the issuance of the notification.
4. Judicial Involvement:
   • The committee’s TORs are in accordance with a judgment issued by the Islamabad High Court, vide WP No 21731 2023.

In summary, the FBR has taken steps to address issues related to income tax refunds by forming a committee with specific TORs, including electronic processing and reforms. The aim is to enhance efficiency, reduce delays, and improve the overall processing of income tax refunds for taxpayers in Pakistan.