Diplomatic Grievance Redressal Cell Inaugurated by Federal Tax Ombudsman

ISLAMABAD: Diplomats stationed in Pakistan now have a direct avenue for addressing tax-related concerns with the Federal Board of Revenue (FBR) through the newly established “Diplomatic Grievance Redressal Cell” at the Federal Tax Ombudsman’s (FTO) office.

The FTO of Pakistan has launched this pioneering initiative, marking the inauguration of the “Diplomatic Grievance Redressal Cell” at its Secretariat on Friday. This follows the successful implementation of the Overseas Pakistanis Grievance Redressal Cell (OPGRC). The new cell aims to offer a specialized channel for diplomats to resolve issues stemming from tax maladministration by FBR officials.

The formal inauguration of the Diplomatic Grievance Redressal Cell occurred on April 11, 2025, at the FTO Secretariat. Almas Ali Jovindah, who heads the Overseas and Diplomatic Grievance cell and serves as Legal & Media Advisor to the Federal Tax Ombudsman and Executive Secretary of the Forum of Pakistan Ombudsman and OIC Ombudsman Association, hosted the event. The session featured a panel led by Dr. Jah, Federal Tax Ombudsman, alongside Advisor Customs Dr. Arslan Subuctageen, and Registrar Muhammad Khalid Javed.

Dr. Asif Mahmood Jah, the Federal Tax Ombudsman, officiated as the chief guest and delivered the keynote address.

In his opening remarks, Dr. Jah underscored his continuous dedication to assisting diplomats and overseas Pakistanis, both during his time in customs and currently as the FTO. He noted the rising volume of complaints from embassies and emphasized that the new cell is designed to provide a clear and effective mechanism for resolving these problems.

The event saw participation from several embassies and international missions, including representatives from the Austrian Embassy, the Embassy of the Kingdom of the Netherlands, the Australian High Commission, the Embassy of Greece, the Embassy of Switzerland, the Embassy of Germany, the EU Delegation, and the Embassy of Poland.

Almas Ali Jovindah delivered an informative presentation detailing the evolution of the Ombudsman institution, from its origins with Caliph Omar (R.A.) to its formal establishment by King Charles XII of Sweden in 1713, and its modern iteration established in 1809. Presently, ombudsman institutions are active in over 140 nations.

He clarified that the Diplomatic Grievance Redressal Cell serves as a specialized framework for addressing tax-related grievances from diplomatic missions and international bodies. This initiative is intended to build trust within the diplomatic community, improve transparency in resolving grievances, assign dedicated liaison officers, ensure priority in resolving issues, and offer transparent progress updates.

Dr. Arslan Subuctageen, Advisor Customs, described the provisions within the Customs Act that permit diplomats to import up to two vehicles without duty, with the stipulation that the first vehicle is duty-free for personal use. The second vehicle is allowed if the diplomat’s spouse possesses a diplomatic card in Pakistan. Any disposal of these vehicles requires approval from the Ministry of Foreign Affairs.

The FTO Advisor Customs further explained that if vehicles are sold within two years, they are subject to full duties. However, after two years, a monthly depreciation of one percent (up to 50%) is applicable.

Muhammad Khalid Javed, the FTO Registrar, drawing on his extensive background in tax matters, clarified that diplomats can utilize zero-rated sales tax on applicable goods and services through STR-12 authorization.

A minimum purchase amount of Rs 10,000 and an exemption certificate issued by the Ministry of Foreign Affairs are necessary. In situations involving erroneous tax payments, refund requests can be processed through the Ministry.

As per the Federal Excise Act, 2005, diplomats are granted conditional exemptions from FED on imports, contingent upon adherence to relevant compliance standards.

The session concluded with a Q&A segment where diplomats were encouraged to submit their questions in written form. Participants also received FTO’s newly released “Manual on Taxpayers’ Rights.”

Jovindah expressed gratitude to everyone present and reaffirmed the FTO’s pledge to efficiently address diplomatic grievances. Participation certificates were presented to the attendees.

Dr. Jah concluded the session with a call to action, urging diplomats to voice their concerns, stating, “We encourage all diplomats to approach us with their grievances. We are committed to protecting your rights and ensuring that no harassment by tax authorities goes unresolved.”