The Federal Tax Ombudsman (FTO) Secretariat has issued a clarification to address confusion surrounding a recent decision by the President of Pakistan related to a representation filed by the Federal Board of Revenue (FBR). The clarification comes after sections of the media reported that the President had overturned or restricted the powers of the FTO — a claim the Secretariat says is inaccurate.
According to the FTO, the President has not annulled or set aside any of its decisions, nor has he placed any limitations on the Ombudsman’s legal authority to initiate own-motion actions or conduct inspection-based proceedings. These powers, the Secretariat emphasized, remain fully intact under the law.
The misunderstanding arose from reports about a presidential decision on a representation submitted by the FBR, which challenged certain findings and directions issued by the FTO to tax authorities. The FTO explained that the President’s intervention was limited in nature and did not undermine the institution’s role or mandate.
What the President’s decision does clarify is the division of responsibility following the identification of defects or irregularities during FTO investigations or inspections. While the FTO retains the authority to point out shortcomings and maladministration, the responsibility for designing and implementing detailed corrective procedures will rest with the FBR. These procedures must be effective, transparent, and fully compliant with the law.
The FTO further stated that the President’s decision is fully aligned with existing legal frameworks and, rather than weakening the Ombudsman’s position, actually reinforces and validates the lawful exercise of its powers in own-motion and inspection-based cases.
Following the decision, the Implementation Wing of the FTO Secretariat has formally taken up the matter with the Federal Board of Revenue. Further action will now proceed in accordance with the President’s ruling, ensuring that corrective measures are handled by the relevant tax authorities while maintaining oversight and accountability.
In essence, the clarification seeks to reassure stakeholders that the FTO’s independence and authority remain unaffected, and that the President’s decision aims to improve administrative clarity rather than restrict institutional powers.