Pakistan's Federal Tax Ombudsman probes iPhone fraud and revises teachers' tax deductions

The Federal Tax Ombudsman (FTO) in Pakistan has opened a nationwide investigation into an alleged customs and courier fraud involving a duty‑paid iPhone 16 Plus. The complaint, filed by Muhammad Nausherwan Khan, alleges that after paying full import taxes the phone was released to another individual using forged documents. FTO head Zafar Hijazi said the case points to an organised scam and ordered the Federal Board of Revenue to direct the Customs chief to examine FedEx’s clearance records from January 2025 to June 2026 to identify any other affected consignments.

In a separate ruling, the FTO declared that the Federal Board of Revenue had been incorrectly applying a higher withholding tax on remuneration paid to teachers for examination duties. The Ombudsman directed that such payments be taxed under salary provisions (Section 149) rather than the higher service‑tax rate (Section 153), a change expected to relieve thousands of teachers across Pakistan.