RITBA hails new ADRC rules in resolving 31,098 tax cases of Rs 1. 276 trillion

Khudayar Mohla
ISLAMABAD, (TLTP): Rawalpindi Islamabad Tax Bar Association (RITBA) on Saturday lauded the government for improving rules relating to Alternate Dispute Resolution Committees (ADRCs) in order to resolve as many as 31,098 tax cases of over Rs.1.276 trillion, currently under adjudication in various courts.
President RITBA, Syed Tauqeer Bukhari said in a statement that the government move will facilitate taxpayers as well as the tax collectors, adding revenue of over Rs1.276 trillion is stuck at different stages of litigation in 31,098 cases. Terming it as part of the numerous challenges the tax system is facing, he said that it is very important to understand the reasons for such a high number of cases against the Federal Board of Revenue (FBR) so that tax collection can be improved which is dismally low.
He said that the out-of-court settlement of tax disputes has become an important part of the tax system around the world while it was not effective in Pakistan until recently resulting in many problems.
“Litigation should not be the first option but should be used as last option by the taxpayer for which ADRC has been improved to mitigate litigation”, Bukhari said.
Bukhari informed that now any taxpayer can opt to resolve his issue through ADRC by submitting an application to the FBR which will be bound to refer the application to ADRC within 60 days while the committee will have to decide the dispute within 120 days. Unlike the past practice, now it has been made mandatory that the decision of the committee shall be binding on the aggrieved person and the FBR, Bukhari concluded.