PTBA flags gaps in FBR digital system, seeks urgent fixes

ISLAMABAD: The Pakistan Tax Bar Association (PTBA) has asked the Federal Board of Revenue (FBR) to urgently remove shortcomings in its digital tax system and bring the infrastructure in line with existing legal requirements, while improving facilitation for taxpayers.

In a formal representation submitted to FBR Chairman Rashid Mahmood Langrial, the association said weaknesses in system design, governance and statutory alignment could affect the goals of the tax authority’s ongoing digitisation drive.

The PTBA pointed to a range of operational problems in the current system. These included mismatches between digital procedures and legal provisions, incomplete integration of HS codes, and the lack of a formal process for correcting digital records.

The association submitted 12 recommendations to address the issues.

Key recommendations submitted to FBR

Among its proposals, the PTBA said the FBR should ensure that all laws, rules and SROs are fully and correctly incorporated into the IRIS system instead of being implemented only in part.

It also called for a systematic review of whether the digital system matches statutory provisions, starting with SRO 297(I)/2023, followed by corrective measures where needed.

The association further recommended a clear roadmap for complete integration of HS codes across return annexures and invoicing modules.

It also proposed a review and rationalisation of the units of measurement used in sales tax returns so they remain consistent with the Sales Tax Act 1990.

According to the PTBA, there is also a need for a formal and operational mechanism for digital correction and rectification, including structured amendments supported by audit trails.

The association recommended the development and integration of a framework through which technical and system-related issues can be raised, tracked and resolved. It said the framework should be transparent, multi-tiered and fully auditable, and should provide direct access to designated Pakistan Revenue Automation Limited (PRAL) technical representatives, relevant FBR IT wing officers, and a clearly defined escalation route to senior governance levels.

Grievance redressal and governance proposals

The PTBA also proposed a mandatory and time-bound grievance redressal mechanism, suggesting that system-related complaints should be resolved within 48 to 72 hours.

It recommended restoring an independent and empowered Member IT position within the FBR to strengthen oversight of the digital tax infrastructure.

The association further urged the preparation of jointly agreed standard operating procedures between the FBR and PRAL for dispute resolution and handling system grievances.

It also proposed periodic public disclosure of system performance indicators, including uptime, error rates and complaint resolution timelines, as a way to improve transparency.

In addition, the PTBA called for a clear accountability framework setting out the respective responsibilities of the FBR and PRAL in managing the digital tax system. The PTBA proposed a mandatory, time-bound grievance redressal framework, suggesting a 48- to 72-hour resolution window for system-related issues.

The association said these steps were needed to address digital gaps that are affecting taxpayers and to ensure that the FBR’s digitisation reforms are supported by proper legal alignment, governance arrangements and operational mechanisms.