Islamabad: The Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to recover short-deducted withholding tax from the National Highways Authority (NHA) due to negligence by FBR’s field formations, as reported on July 1.
According to the details, a public interest complaint revealed that the NHA had not properly applied withholding taxes, resulting in significant unpaid amounts. The FTO ordered a comprehensive audit to recover the shortfall and directed the FBR to take legal action to rectify the violations. Additionally, the FTO highlighted discrepancies in withholding tax rates between the NHA and the Punjab Highway Department, requiring the NHA to pay the differential amount with an 18% surcharge.
