Karachi, January 14, 2025 – The Federal Tax Ombudsman (FTO) has instructed the Federal Board of Revenue (FBR) to clarify issues surrounding the withholding tax deduction on internet usage. The directive comes in response to a complaint regarding discrepancies in tax deduction certificates issued by M/s. Wateen Telecom Ltd. The complainant, a salaried taxpayer and long-time user of M/s. Wateen Telecom Ltd., highlighted that the company failed to issue a correct tax deduction certificate for the year. Historically, the company provided certificates reflecting a 15% deduction as per the Income Tax Ordinance, 2001, but this year’s certificate did not align with the payments made. The complainant approached the FBR for resolution but received no satisfactory response, prompting the intervention of the FTO. Investigation Details The FTO forwarded the complaint to the Secretary of the Revenue Division under section 10(4) of the FTO Ordinance and section 9(1) of the Federal Ombudsmen Institutional Reforms Act, 2013. In response, the Commissioner-IR, Zone-V RTO, Lahore, stated that the FBR does not maintain detailed records of internet usage or billing information for taxpayers. They argued that there was no malintent by the department and requested the complaint be dismissed. During the hearings, the complainant reiterated…