FBR Directed Not To Burden PTV Employees With Excessive Tax Deductions

Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to ensure that the low-paid employees of Pakistan Television Corporation (PTV) are not burdened with excessive tax deductions at the withholding stage.

FTO further directed the FBR to implement these recommendations and findings in liaison with PTV’s management on the lines already done by the management of Pakistan Broadcasting Corporations (PBC) and report compliance within 45 days.

The FTO order stated that an identical issue has already been dealt with by the FTO in a complaint filed by an employee of the PBC, PTVs sister organization. In the said case during investigation and review proceedings, the FBR conceding the wrong being done has not only implemented the recommendations but rather widely circulated the findings of this office among all concerned.

Secretary FBR Tariq Iqbal stated that in pursuance of FTO Recommendations dated Feb 24, 2022, the IR Policy Wing of FBR has already issued instructions. It was now up to the IR Operations Wing and the relevant field offices to examine the status of the master-servant relationship on a case-by-case basis.

In view of the facts, it has been established that the complainants, who have been hired by PTV as supervisors and translators over the last few decades as low-paid employees are entitled to the similar relief which has been allowed to the employees of PBC and other similar cases.

Excessive and harsh deduction of tax from their meagre salaries, under u/s 153(1)(b) of the Income Tax Ordinance, is against the dictates of the law and the nature of the treatment being discriminatory, tantamount to maladministration.

The petitions were filed in terms of section 10(1) of the Federal Tax Ombudsman Ordinance, 2000 (FTO Ordinance) against excessive and unjust practice of deducting income tax at 10 to 20 percent under section 153(1)(b) of Income Tax Ordinance, from the salaries/wages of low paid temporary/contractual employees of PTV, Headquarters Islamabad, treating them as services providers. The complainants demand tax treatment under the head salary, warranting tax deduction u/s 149.

Source: Pro Pakistan