ISLAMABAD: Prime Minister Shehbaz Sharif has approved the establishment of a Centralised Litigation Management System (CLMS) along with a nationwide overhaul of the tax machinery’s legal system to ensure faster disposal of genuine tax cases.
Task Force Behind Key Reforms
The decision was taken on the recommendations of a task force led by former Inland Revenue Service officer Shad Muhammad Khan. The task force successfully reconciled cases at the Supreme Court and facilitated the resolution of around 1,800 cases within a year.
Updated Data on Pending Tax Cases
The task force report revealed that 2,800 tax cases are currently pending before the Supreme Court of Pakistan, significantly lower than earlier estimates of 5,000 to 6,000 cases reported by the Federal Board of Revenue (FBR). Of these, around 1,600 cases relate to Inland Revenue Service matters, while about 1,200 involve customs disputes.
ADR System Contributes to Revenue
Officials informed the meeting that the Alternate Dispute Resolution (ADR) mechanism has already generated Rs24 billion for the national exchequer this year through the settlement of tax disputes.
Digital CLMS to Improve Transparency
The approved CLMS will be a digital system designed to organise tax litigation data, improve tracking of cases, and enhance transparency. Officials said it will reduce misreporting of legal cases and ensure more accurate case management.
Implementation Timeline and HR Instructions
The prime minister directed the task force to submit a detailed implementation timeline within one week and emphasised that the system should be established at the earliest. He also instructed authorities to recruit competent human resources in the FBR’s legal wing strictly on merit.
Six-Point Reform Plan Approved
During the meeting, a six-point reform plan was presented, including the formation of case scrutiny committees, the establishment of the CLMS, and linking officers’ performance reports with litigation outcomes.
Overhaul of FBR Legal Structure
Under the new plan, the legal system of the FBR will be restructured through the appointment of directors of tax law at provincial and regional levels. These officials will coordinate with legal officers at Regional Tax Offices to strengthen case management and ensure effective representation in courts and tribunals.
Focus on Digitisation and Faster Decisions
The Prime Minister said ongoing digitisation and reforms in the FBR are yielding positive results. He also directed that the ADR system be further strengthened to reduce the burden on courts and ensure timely resolution of tax disputes.
