FTO Orders Expedient Resolution of DRAP Tax De-registration

ISLAMABAD: The Federal Tax Ombudsman (FTO) has directed the Large Taxpayers Office (LTO), Islamabad, to expedite the conclusion of proceedings regarding the application for de-registration of the Sales Tax Registration Number (STRN) belonging to the Drug Regulatory Authority of Pakistan (DRAP).

The complaint was submitted under Section 10(1) of the FTO Ordinance, 2000, highlighting prolonged inaction by tax authorities, despite explicit directives from the Appellate Tribunal Inland Revenue (ATIR) to re-evaluate the matter.

The complainant emphasized the absence of a decision concerning their formal request for de-registration, while simultaneously receiving notices for tax compliance, which has created procedural confusion and administrative difficulties.

The FTO noted that the delay in adhering to the Tribunal’s order and the lack of action on the de-registration application constitute maladministration as defined under Section 2(3) of the FTO Ordinance. Further complicating the situation is a legislative modification that could potentially exempt regulatory and licensing bodies, such as DRAP, from specific taxes as per the Islamabad Capital Territory (Tax on Services) Ordinance, 2001.

The LTO, in its response, stated that remand proceedings were in progress and that a hearing notification had been issued. However, a conclusive order had not yet been issued. The complainant’s representative verified the receipt of the notification but stressed that the de-registration application remained unaddressed.

Taking a strong stance against these administrative delays, the FTO has instructed the Chief Commissioner of LTO Islamabad to accelerate the conclusion of de novo proceedings in accordance with the Tribunal’s order and to decide on the complainant’s outstanding de-registration application in accordance with the relevant legal provisions.

The LTO is required to submit a compliance report within 45 days. This directive from the FTO underscores an ongoing commitment to institutional accountability and equitable treatment of taxpayers, ensuring that due process is not undermined by bureaucratic delays.