Islamabad:The Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue to issue instructions to all Inland Revenue field formations ensuring that recovery of Super Tax is made only after adjustment of pending refund claims.
He also asked the commissioner (Inland Revenue), Refund Zone, RTO Faisalabad, to dispose of a complainant’s refund application for Tax Year 2024 strictly in accordance with law after providing a proper hearing to the taxpayer and to report compliance within 45 days.
The ombudsman observed that the delay in processing the refund and the insistence on cash recovery of the tax demand, despite the availability of a refund claim, constituted maladministration and arbitrary conduct on the part of the department.
The complaint was filed against non-issuance of an income tax refund amounting to Rs. 4.506 million for Tax Year 2024. The complainant had filed a return of income under Section 114(1) of the Income Tax Ordinance, 2001, claiming the said refund and subsequently e-filed the refund application on 13 August 2025. However, the department didn’t dispose of the refund application within the prescribed time.
