FTO pushes faceless refund system
The Federal Tax Ombudsman has recommended that Pakistan's Federal Board of Revenue implement a faceless, automated income tax refund system. This follows a ruling that the current FIFO policy does not justify excessive delays in processing taxpayer refunds.
Why it matters
The decision underscores the legal rights of taxpayers against administrative delays and promotes the digitization of government financial services to reduce corruption and inefficiency.
--> Home Business FTO pushes faceless refund system FBR's FIFO policy cannot override taxpayer rights, Ombudsman rules after Rs42.86m refund delay
facebook --> twitter --> whatsup --> linkded --> email MORE (3) Messenger Whatsapp --> Photo: File/ X ISLAMABAD: The Federal Tax Ombudsman has recommended that the Federal Board of Revenue (FBR) introduce a faceless income tax refund system to enable electronic transfer of refunds directly into taxpayers' bank accounts after automated verification of eligible claims.
The recommendation was issued while deciding a complaint filed by M/s Sprint Oil & Gas Services FZC, which had sought payment of an income tax refund amounting to Rs42.86 million for tax year 2025. The company submitted its online refund application on April 13, 2026; however, the refund was not issued even after the legally prescribed 60-day period had lapsed.
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