FTO has no powers, judication to deal with cases: AGP

ISLAMABAD: Attorney General of Pakistan, Mansoor Usman Awan Wednesday said the Federal Tax Ombudsman (FTO) has no powers and judication to deal with the cases of classification of goods and assessment of taxes.

He informed Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla that the FTO office cannot intervene in the matters of assessment of taxes and valuation or classification of imported goods. The valuation of goods would be done by the Customs Classification Committee.

Under section 9 (jurisdiction, functions and powers of the Federal Tax Ombudsman) of Federal Tax Ombudsman Ordinance-2000, Federal Tax Ombudsman shall not have jurisdiction to investigate or inquire into matters which are sub judice before a court of competent jurisdiction or tribunal or board or authority on the date of the receipt of a complaint, reference

or motion by him; or relate to assessment of income or wealth, determination of liability of tax or duty, classification or valuation of goods, interpretation of law, rules and regulations relating to such assessment, determination, classification or valuation in respect of which legal remedies of appeal, review or revision are available under the Relevant Legislation.

The committee examined the non-implementation of the Presidential Order of 16 July 2025. Members were apprised that the issue pertains to the classification of goods and the jurisdiction of the Federal Tax Ombudsman (FTO). The committee was of the view that the basic purpose of the Ombudsman’s office and the Presidential Order is to provide a final appellate mechanism, and that challenging its decisions would undermine this intended function. It was agreed that a legal opinion from the Attorney General would be placed before the committee to assist in resolving the matter.

The committee also discussed the issue raised by Senator Dr. Afnan Ullah Khan regarding allegations of harassment of Senators by the FBR. The chairman advised Senator Dr. Afnan Ullah Khan to await the outcome of the appeal pending before the relevant forum. The committee emphasized that impartiality must be maintained in tax administration and that state institutions should not be perceived as instruments of political victimization.

The committee was further briefed on the Virtual Assets Bill, 2025. It was highlighted that the Bill seeks to establish a regulatory framework for virtual assets in line with international practices, providing safeguards against misuse while supporting innovation and economic participation, particularly among the youth. Members underlined the importance of aligning the framework with Pakistan’s national priorities and raised queries regarding consumer protection, regulatory overlaps, obligations of licensees, and the relationship of the Bill with existing legislation. The Committee observed that certain clauses required further refinement and decided that deliberations on the Bill would continue in the coming meeting.

The meeting was attended by Senators Abdul Qadir, Dr. Afnan Ullah Khan, Sherry Rehman, Faisal Vawda, Dilawar Khan, Farooq Hamid Naek, Ahmed Khan, Minister for Finance and Revenue, Attorney General of Pakistan, Federal Secretary, Ministry of Law and Justice, and senior officials of relevant departments.—Sohail Sarfraz & Tahir Amin