Lahore: The Federal Board of Revenue (FBR) has withheld active taxpayer status from individuals who submitted manual income tax returns for Tax Year 2024, prompting concerns among tax professionals regarding the implementation of existing directives and regulatory provisions.
According to tax experts, the decision appears to be at variance with directions issued by the Federal Tax Ombudsman (FTO) as well as FBR Circular No. 6 of 2025–26, which acknowledged the position of taxpayers who filed manual returns and provided regulatory relief.
The circular, issued earlier, extended the filing deadline for manual return filers until November 30, 2025, under Section 214A of the Income Tax Ordinance, 2001. It also directed field formations to offer free legal and technical assistance to facilitate compliance by affected taxpayers.
Despite these provisions, manual filers have reportedly not been included in the Active Taxpayers List (ATL). Tax professionals state that the issue does not stem from non-compliance by taxpayers but from inconsistent implementation of statutory instructions at the field level.
Experts note that the FTO’s directions are binding on the tax authority and that failure to implement them may result in avoidable disputes and uncertainty for compliant taxpayers. They have called on the FBR to review the matter and ensure uniform application of its circulars and ombudsman directives to maintain consistency in tax administration.
The FBR has not yet issued an official clarification on the matter.
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