The Federal Board of Revenue (FBR) is facing strong criticism for failing to issue the manual income tax return form for Tax Year 2025 — a lapse that many view as yet another example of the authority’s administrative negligence.
Despite two deadline extensions, the manual return form remains unavailable, frustrating taxpayers and practitioners nationwide. The matter reached the Federal Tax Ombudsman (FTO) after formal complaints were filed by Advocates Mian Abdul Ghaffar and Waheed Shahzad Butt under Section 10(1) of the FTO Ordinance, 2000, accusing the FBR of maladministration and negligence.
Officials Skip FTO Hearing
During an FTO hearing on October 15, 2025, senior FBR officials — including Member IR (Operations), Member IR (Policy), and DG (IT & DT) — were directed to attend and provide written responses. However, none appeared or submitted replies, with only RTO Gujranwala confirming that the authority to issue manual forms lies solely with FBR headquarters. The FTO observed that such absence and non-responsiveness reflect “unreasonable neglect and inefficiency,” constituting maladministration under Section 2(3)(ii) of the FTO Ordinance.
Legal Context and Procedural Lapses
As per Rule 73(2DD) of the Income Tax Rules, 2002, only individuals earning Rs. 1 million or more annually or having turnover above Rs. 50 million are required to e-file returns. Others are legally entitled to file manual returns. Historically, FBR issued both digital and paper forms together each year. However, for 2025, only the electronic form was uploaded on August 18—less than 45 days before the original September 30 deadline, instead of the required 92 days from July 1.
System Glitches Compound Issues
Tax practitioners also reported persistent technical glitches in the IRIS e-filing system, including login errors, submission failures, and system crashes. Despite repeated complaints and a formal letter to the FBR chairman on September 17, no corrective steps were taken.
FTO’s Findings and Directives
The Ombudsman ruled that FBR’s inaction represented “clear negligence, inefficiency, and maladministration,” noting that manual forms had been issued every year until 2024. The FTO directed that:
- Member IR (Operations) immediately upload the manual return form for Tax Year 2025.
- DG (IT & DT) resolve IRIS system issues and ensure continuous functionality.
- FBR must submit a compliance report within seven days.
Public Backlash and Expert Opinion
Tax experts warn that repeated administrative lapses and technical failures erode public confidence and hinder voluntary tax compliance. They stress that extending deadlines is meaningless if taxpayers lack basic tools for filing.
As the 2025 filing season drags on, the Ombudsman’s intervention is expected to push FBR toward overdue reforms, better system management, and renewed taxpayer trust.
