The Pakistan Tax Bar Association (PTBA) has asked the Federal Board of Revenue (FBR) to immediately address serious problems in its digital tax system. Experts warn that ongoing issues could seriously harm the government’s broader tax reform efforts if left unresolved.
Taxpayers continue to face daily difficulties because the current system suffers from design gaps, weak governance, and poor alignment with actual tax laws. Many features do not match legal requirements, and important tools like HS code integration and easy error correction remain missing or incomplete.
Taxpayers Struggle with Errors and Slow Fixes
One major complaint involves the inability to correct mistakes in digital records. Without a proper rectification system and clear audit trails, small errors often create big problems for businesses. The PTBA highlighted that several parts of the IRIS system and related SROs do not fully follow the Sales Tax Act and other rules.
To solve these challenges, the Tax Bar submitted a detailed list of 12 proposals to FBR Chairman Rashid Mahmood Langrial. They called for complete alignment of all tax laws, rules, and notifications inside the digital platform. The association also demanded a full audit of SRO 297(I)/2023 and full integration of HS codes in tax returns and e-invoicing systems.
Better Governance and Faster Complaint Resolution Needed
The PTBA further proposed standardising units of measurement according to the Sales Tax Act 1990. They stressed the need for a formal mechanism to correct digital records with proper transparency. Another key suggestion includes setting up a structured complaint handling system with direct access to FBR and PRAL officials. The Tax Bar wants complaints resolved quickly within 48 to 72 hours.
These steps, according to the Tax Bar, will make the digital tax system more user-friendly, transparent, and effective. Businesses hope the FBR will act swiftly on these proposals so that Pakistan’s shift toward digital taxation delivers real benefits instead of creating unnecessary hurdles.
