Islamabad, The Federal Tax Ombudsman (FTO) has issued a directive to the Federal Board of Revenue (FBR) to recover a significant shortfall in withholding tax from the National Highways Authority (NHA). This action comes after a public interest complaint highlighted improper tax deductions by the NHA, facilitated by oversight from FBR’s field formations.

According to Zameen.Com, The FTO’s decision was influenced by the discovery that the NHA had failed to correctly apply withholding taxes, leading to substantial unpaid tax amounts. The Ombudsman has ordered a thorough audit to address these discrepancies and has mandated the FBR to undertake legal measures to ensure compliance and recovery of the taxes due. Furthermore, the FTO noted differences in withholding tax rates between the NHA and the Punjab Highway Department, ordering the NHA to settle the differential with an added 18% surcharge.

This move signifies a strict enforcement effort by the FTO to uphold tax laws and ensure governmental bodies adhere to fiscal responsibilities, aiming to rectify the financial discrepancies and enhance accountability within public sector operations.