FTO Uncovers Illegal NTN Registrations Inside FBR, Orders Probe

The Federal Tax Ombudsman (FTO) has uncovered a fresh illegal NTN registration scam within the Federal Board of Revenue (FBR), revealing that several field formations manually registered taxpayers in violation of official Standard Operating Procedures.

Taking serious notice, the FTO said manual registrations without proper verification pose a major risk of state revenue leakage. The practice was found to be against FBR rules that make it mandatory to link taxpayer registration with a verified SIM number.

In its order, the FTO declared the issue a clear case of maladministration under the Federal Tax Ombudsman Ordinance, 2000, as the registrations were carried out contrary to established laws and procedures.

The FBR has been directed to involve the Director General (DT & IT) and Pakistan Revenue Automation Limited (PRAL) to conduct a comprehensive investigation into recently issued manual NTNs. Officers found involved in bypassing SOPs may face departmental action.

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As a sample, 65 manually registered cases were identified at RTO Multan in November 2025, all created from official logins without required SIM-based verification.

The FTO warned that such practices damage public trust and undermine FBR’s digital tax reforms, urging immediate closure of system loopholes.

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