High Court issues rule on legality of NBR's mandatory online tax return order

The High Court on Thursday issued a rule on the 'Special Order' issued by the National Board of Revenue (NBR), which makes it mandatory for all taxpayers to submit their income tax returns through an online system.
The High Court issued a rule directing the respondents to explain why the 'Special Order', issued on August 11 by the NBR Chairman, mandating online submission of income tax returns, should not be declared without lawful authority.
Law Secretary, Internal Resources Division Secretary of the Finance Ministry, NBR Chairman and others have been asked to comply with the rule within four weeks.
The High Court bench of Justice Kazi Zinat Hoque and Justice Aynun Nahar Siddiqua passed the order after hearing a writ petition filed by Supreme Court lawyer Miazi Alamgir Alam Chowdhury. The petitioner appeared in court to support his case.
On August 31, lawyer Miazi filed the petition as a public interest litigation, arguing that the NBR order violates the Section 328(4) of the Income Tax Act 2023.
The petitioner also sought a stay on the operation of the Special Order so far as it relates to the Section 328(4) of the Income Tax Act 2023 and a directive upon the NBR to maintain and continue the paper-based filing system for income tax returns for all individual taxpayers.
However, the court only issued a rule.
The National Board of Revenue, in a major push towards automated e-filing, had issued an order saying that online income tax return submission is mandatory for all individual taxpayers across the country from this year.
However, the revenue board exempts certain groups from the mandatory e-filing.

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