FBR Denies Active Status to Manual Tax Filers

The Federal Board of Revenue (FBR) has withdrawn Active Taxpayer status from individuals who submitted manual income tax returns for Tax Year 2024, a move that has triggered serious concern among tax practitioners regarding adherence to binding statutory directives and internal regulatory instruments, as reported in the media.

Tax professionals assert that the decision directly contradicts the binding directions of the Federal Tax Ombudsman (FTO) and FBR Circular No. 6 of 2025–26, which expressly recognized the legal standing of manual return filers and granted them procedural relief under the applicable framework.

According to experts, the circular clearly extended the filing deadline for such taxpayers until November 30, 2025, under Section 214A of the Income Tax Ordinance, and mandated field formations to provide free legal and technical facilitation to enable lawful compliance.

Notwithstanding these express provisions, individuals who filed manual returns have reportedly been prevented from being classified as active taxpayers. Experts maintain that enforcement authorities have failed to implement both the FTO’s binding determinations and the FBR’s own circular, effectively depriving compliant taxpayers of their statutory entitlements.

They further argue that the matter constitutes administrative non-compliance rather than any procedural deficiency on the part of taxpayers, resulting in unlawful penalties despite adherence to the governing legal regime.

Tax experts have called upon the FBR to immediately reinstate active taxpayer status for affected individuals and ensure consistent enforcement of statutory orders, circulars, and ombudsman directives to avert prolonged disputes and litigation.