The Federal Government has decided to significantly increase the authority of single-member Appellate Tribunal Inland Revenue (ATIR) members, raising their case-deciding power from Rs. 1 million to Rs. 50 million. This move aims to accelerate case resolutions and reduce the backlog at ATIR.

The decision followed a meeting between officials from the Federal Board of Revenue (FBR) and the Law and Justice Division, held under the Prime Minister’s directive to address key ATIR reforms. Discussions covered several issues, including the powers of single ATIR members, pending cases, the constitution of new ATIR benches, and the formation of larger benches for nationally significant issues.

Currently, single members can adjudicate cases up to Rs. 1 million. The agreed increase to Rs. 50 million is expected to enhance the rate of case disposal, facilitating quicker resolutions and easing the backlog.

The FBR has shared a list of 1,489 pending cases, amounting to Rs. 1.318 trillion, with the Law Division, requesting expedited hearings. Law division officials assured that ATIR would be urged to prioritize these cases.

In line with the Prime Minister’s directives, the number of ATIR benches is set to increase. The Secretary of the Law and Justice Division proposed expanding the number of benches from 20 to 36, with new members selected from the Inland Revenue Service (IRS).

A hybrid e-filing system is proposed for taxpayers for the first six months, transitioning to mandatory online filing thereafter. This change aims to ensure the smooth operation of ATIR. E-filing for the department will be mandatory from the system’s implementation, ensuring full functionality.

For issues of national significance, the formation of a larger bench is proposed to deliver uniform resolutions. The Chairman of ATIR will convene these benches to provide decisive rulings, which will be circulated nationwide to ensure consistency and prevent duplication of effort. The Secretary of the Law and Justice Division supported this proposal and instructed his staff to implement it.