FPCCI President Appreciates FTO’s Decision to Refund the Excessive Sales Tax Charged


Irfan Iqbal Sheikh, President FPCCI, has appreciated the decision of the Federal Tax Ombudsman (FTO) in favor of a number of complainants against an automobile company; filed against FBR Islamabad for charging the excessive sales tax charged. He added that this decision sets the right precedence for the consumer protection mechanism; keeping the sellers in check for implementing the right amount of taxes & duties and creating a sense of accountability for the tax authorities.

FPCCI President added that, as per information released by the Office of FTO, 24 complainants were wrongfully charged 17% sales tax for a 998 cc vehicle instead of the applicable 12.5% at that time, i.e. after July 2021 when the Finance Act 2021 had become applicable. FTO not only ordered to return the excess amount collected; but, he also declared the practice as a case of maladministration.

It is pertinent to note the President of Pakistan has also rejected an appeal against the aforementioned FTO decision; as the appeals against the decisions of FTO can only be filed to the President of Pakistan; which strengthens the trust in quality decisions given by FTO.