PTBA Urges FBR to Fix Digital Tax System Gaps

The Pakistan Tax Bar Association (PTBA) has urged the Federal Board of Revenue (FBR) to resolve critical deficiencies within its digital tax framework, cautioning that persistent gaps may undermine the overall success of ongoing digitisation initiatives.

In an official communication addressed to FBR Chairman Rashid Mahmood Langrial, the association outlined concerns relating to system architecture, governance structures, and compliance with statutory requirements, while also submitting a detailed set of 12 recommendations.

According to the PTBA, discrepancies exist between digital procedures and legal provisions, alongside incomplete integration of Harmonised System (HS) codes and the absence of formalised processes for rectifying digital records.

The association recommended that all applicable laws, rules, and statutory regulatory orders be comprehensively embedded within the IRIS system, rather than being partially implemented. It further advised conducting a thorough compliance audit of the system, beginning with SRO 297(I)/2023, followed by necessary rectifications.

Additionally, PTBA called for a structured roadmap to ensure full integration of HS codes across return annexures and invoicing systems, and emphasized the need to standardise units of measurement in sales tax returns in alignment with the Sales Tax Act, 1990.

The association also proposed the introduction of a formal mechanism for digital amendments and corrections, supported by audit trails, as well as a system for tracking and addressing technical issues efficiently.

Moreover, it suggested implementing a transparent, multi-tier grievance redressal system, providing access to PRAL technical teams, FBR IT officials, and clearly defined escalation procedures.

PTBA recommended establishing a time-bound resolution framework for system-related complaints within 48 to 72 hours and advocated for reinstating an independent Member IT position within the FBR to enhance institutional oversight.

It further proposed the development of standard operating procedures between the FBR and Pakistan Revenue Automation Limited for managing disputes and technical challenges, along with periodic public reporting of system performance metrics such as uptime, error frequency, and complaint resolution timelines.

Lastly, the association stressed the importance of instituting a clear accountability structure that distinctly outlines the responsibilities of both FBR and PRAL in overseeing and maintaining the digital tax ecosystem.