PTBP Web Desk
Pakistan’s Federal Tax Ombudsman (FTO) Dr. Asif Jah has ordered an inquiry into the Federal Board of Revenue (FBR) for allegedly making secret changes to the Wealth Statement format for Tax Year 2025 just days before the filing deadline of September 30, 2025.
According to reports, FBR inserted a controversial new column titled “Estimated Current Market Value” in the wealth statement template. This last-minute change forces taxpayers to provide subjective valuations of their assets, sparking concerns of arbitrary enforcement and legal disputes.
The development has triggered serious backlash from tax experts, professional bodies, and legal representatives, who allege that the move constitutes a violation of statutory provisions under Pakistan’s Income Tax Ordinance, 2001.
The matter came to light after Lahore-based tax lawyer Waheed Shahzad Butt filed a public interest complaint. Acting on the complaint, the FTO summoned senior FBR officials, including the Secretary Revenue Division, Member (Operations-IR), Member (Policy), Member (Legal), and DG (IT & DT), for a hearing scheduled on September 29, 2025.
These officials have been directed to submit para-wise comments on the allegations and justify why such a change was made in the final week before the deadline. The FTO’s office is expected to conduct a detailed review and recommend corrective measures if maladministration is confirmed.
Tax experts argue that the sudden insertion of the “Estimated Current Market Value” column has no legal basis. Waheed Shahzad, in his remarks to reporters, described the step as a “blunt violation of law”, directly contravening Sections 114, 115, and 116 of the Income Tax Ordinance, 2001, alongside Rule 73 of the Income Tax Rules, 2002.
He explained that compelling taxpayers to guess the value of their properties without any official guideline exposes them to harassment, litigation, and arbitrary assessments by FBR officials.
“There is no statutory requirement to declare the estimated current market value of assets in the wealth statement. This unlawful step is a clear departure from established practice and will inevitably lead to unnecessary litigation,” Waheed added.
Meanwhile, the Pakistan Tax Bar Association (PTBA) has urged the Federal Minister for Finance to intervene urgently. The body criticized the FBR for its negligence in managing the IRIS tax system, which has been plagued with technical errors and last-minute alterations.
In a strongly-worded representation, PTBA pointed out that the inclusion of the market value requirement duplicates information already available in the “Capital Asset” tab of income tax returns. The association stressed that these abrupt changes at a critical time undermine confidence in FBR’s credibility.
The PTBA listed several grievances, raising direct questions for the finance ministry:
- Why were income tax returns only notified on August 18, 2025, giving taxpayers insufficient time?
- Why is withholding tax data still missing from the MIS portal?
- Why was the IRIS portal shut down for five days without public notice?
- Why is self-populated data incorrect, increasing compliance burden?
- Why do IRIS sessions repeatedly time out, making filing nearly impossible?
- Why was the new “Estimated Current Market Value” tab secretly added on September 23, 2025, after thousands of taxpayers had already filed returns?
- Why are AOPs unable to adjust tax under Section 235 of the Income Tax Ordinance, 2001?
- Why is an AOP’s exempt share still subjected to surcharge through the portal mechanism?
These questions, according to PTBA, highlight a pattern of negligence that has frustrated taxpayers and disrupted the timely filing process.
Adding another layer to the controversy, real estate expert Muhammad Ahsan Malik criticized the sudden inclusion of market value reporting. He reminded that FBR had previously assured stakeholders that such subjective data would not be sought from the general public.
Malik went further, suggesting that before burdening ordinary taxpayers, the FBR should first publicly disclose the market value of assets held by parliamentarians, bureaucrats, and politicians. Only then, he argued, could it justify asking the same from common citizens.
Tax professionals warn that the addition of the “Estimated Current Market Value” requirement not only lacks legal standing but also creates a fertile ground for arbitrary enforcement. Without a standardized valuation mechanism, taxpayers are left guessing asset values, leaving them vulnerable to penalties or disputes.
The change also risks discouraging voluntary compliance, which is already fragile due to repeated disruptions in the IRIS system and a perception of inconsistency within tax administration.
The PTBA and other stakeholders are now pressing the finance ministry to step in, ensure accountability within the FBR, and rectify the IRIS system immediately. They argue that taxpayer confidence can only be restored if transparent processes and error-free systems are put in place.
If left unaddressed, experts warn, this controversy could spiral into widespread litigation, adding pressure on already overburdened courts and further eroding public trust in Pakistan’s tax machinery.
For related news, you can explore Pakistan Tax Bar Association updates and read about the Income Tax Ordinance, 2001 on the official FBR website.
The controversy over FBR’s last-minute changes to the Wealth Statement format underscores deep-rooted issues within Pakistan’s tax administration. With the filing deadline just days away, taxpayers are left grappling with sudden requirements that lack legal clarity.
The FTO’s intervention is a critical step, but long-term reforms in transparency, digital infrastructure, and administrative accountability are necessary if Pakistan is to restore trust in its tax system.
