Taxpayer complaints surge 550% in just 4 months

ISLAMABAD: Amid the much-trumpeted FBR Transformation Plan, complaints regarding maladministration in the tax machinery have surged by a staggering 550 percent in just four months (January-April) of 2025.

The complaints primarily highlight alleged malpractices within the Federal Board of Revenue (FBR), including highhandedness, illegal notices, arbitrary account attachments, fake/flying invoices and sales tax account hacking, among other procedural violations.

Data reveals that the Federal Tax Ombudsman (FTO) received 13,000 complaints in the first four months of 2025, compared to just 2,000 during the same period in 2024. Historically, the FTO averaged around 2,000 complaints every four months, with annual complaints previously hovering around 2,500.

While the FTO has resolved over 6,000 complaints, officials remain alarmed by the sudden influx.

When approached, FBR officials defended the situation, citing the immense pressure to meet an ambitious annual tax target of Rs12,970 billion—later adjusted to Rs12,332 billion after the negotiations with the International Monetary Fund (IMF). The FBR’s top management has reportedly pushed field offices hard to meet monthly and quarterly targets, leading to aggressive revenue collection measures.

Under the IMF conditions, the FBR is also striving to achieve a tax-to-GDP ratio of 10.6 percent, despite shrinking growth in key revenue-generating sectors.

This mismatch between nominal growth and revenue demands is expected to persist, necessitating an alternative dispute resolution mechanism to prevent further escalation in complaints against the FBR’s maladministration in the coming months.