KARACHI: The Pakistan Tax Bar Association (PTBA) has requested detailed information on the total number of tax cases pending both before and after the implementation of the Tax Laws (Amendment) Act 2024.
In a letter to the chairperson of the Appellate Tribunal Inland Revenue (ATIR), the PTBA highlighted the amendments introduced through the Act, which was enacted on May 3, 2024. The changes were aimed at restructuring the two-tier appeal system by introducing pecuniary jurisdiction across the appeal framework under the Income Tax Ordinance 2001, Sales Tax Act 1990 and Federal Excise Act 2005.
The amendments specified that cases with a tax demand not exceeding Rs20 million fall under the jurisdiction of the commissioner, while all other cases are to be handled by the ATIR. The PTBA expressed serious concerns over the functioning of the tribunal, citing complaints from its members regarding operational inefficiencies, inappropriate conduct by bench members and delays in receiving judgments. According to Section 132(1) of the Income Tax Ordinance 2001, appeals must be decided within 90 days of filing, but many judgments remain pending well beyond this stipulated period.
“Over six months have passed since the enactment of the Tax Laws (Amendment) Act 2024, and it is time to assess whether the changes have achieved their objectives. We must evaluate if appeals are being resolved within the legal timeline,” the PTBA stated.
The association has specifically sought data on the total number of cases pending prior to the enactment of the Tax Laws (Amendment) Act 2024; the total number of cases filed since the Act came into effect; a breakdown of pending cases where hearings have concluded but no orders have been issued; and the number of cases adjudicated following the implementation of the Act.
The PTBA noted that this data would provide clarity on whether the amendments have succeeded in streamlining the appeals process. “Unfortunately, the system appears to have failed to meet its objectives. Taxpayers continue to face delays and rising costs, and accessing justice has become increasingly challenging,” the association said.
It further mentioned the growing concerns among its members regarding the competence and performance of the ATIR. The PTBA called for immediate action to address these issues and ensure that taxpayers are provided with a fair and efficient appeals process.