The Federal Board of Revenue has yet to implement a presidential order directing it to enforce an Alternate Dispute Resolution Committee decision in favor of an Islamabad based corporate taxpayer.
The dispute involves a taxpayer from the oil exploration and production sector that challenged the dissolution of an ADRC formed under directions from the Supreme Court. The committee, headed by a retired Lahore High Court judge, completed its proceedings on December 23, 2025, and ruled in favor of the taxpayer by discharging the principal tax liability under dispute.
The committee reached its decision in the presence of the relevant departmental team from Islamabad. However, the Sales Tax Operations later dissolved the committee on January 12, 2026, citing its failure to decide the matter within the statutory period. The taxpayer was not given prior notice or an opportunity to be heard, according to the report.
The Federal Tax Ombudsman’s original order of February 20, 2026, did not validate or direct implementation of the ADRC decision. A subsequent review petition filed on April 6, 2026, was declared non maintainable, prompting the taxpayer to approach President Asif Ali Zardari.
The president accepted the taxpayer’s representation and directed the FBR to implement the ADRC decision forthwith. He observed that once a consent based forum such as an ADRC has decided a matter, one of the parties cannot withdraw from the outcome.
Tax lawyer Waheed Shahzad Butt criticized the FBR’s continued inaction, saying the department could not discard the ADRC process after receiving an unfavorable decision. He said the delay undermined the purpose of the mechanism, which was introduced to reduce litigation and improve taxpayer confidence.
Butt also warned that continued non implementation could expose the FBR to contempt and mandamus proceedings and weaken confidence in the ADRC framework as an alternative to lengthy tax litigation.
The post FBR Defies President Zardari’s Order in Tax Case appeared first on ProPakistani.
