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ISLAMABAD, Jan 22 (APP):The National Assembly on Thursday passed the Income Tax Ordinance (Third Amendment) Bill, 2025, aimed at strengthening the Alternative Dispute Resolution (ADR) mechanism for tax disputes.
Moved by Minister of State for Finance & Revenue and Railways Bilal Azhar Kayani, the legislation seeks to close gaps in the existing framework, particularly in the appointment of the ADR Committee Chairperson. The measure is designed to ensure impartiality, enhance efficiency, and reduce the burden on courts, making ADR a credible and cost effective option for taxpayers.
Under the new law, both taxpayers and the Federal Board of Revenue (FBR) will propose three names each for the chairmanship. If consensus fails, one nominee from each side will be forwarded to the Law Minister for final decision. The Chairperson must be a retired judge of the High Court, Federal Constitutional Court, or Supreme Court with relevant tax or commercial experience.
Kayani noted that previously the FBR held exclusive authority to appoint the chairman, raising concerns about impartiality. The revised process, he said, strengthens taxpayer protections, enhances the ADR framework, and ensures fair dispute resolution.