The Sindh government has been collecting general sales tax (GST) on services from July 1 this year, but apparently, it is reluctant to set up the office of the Sindh tax ombudsman and the appellate tribunal – steps needed to make the process work properly.
The authorities at the tax collecting body – Sindh Revenue Board (SRB) – have worked out the mechanism for setting up these two bodies, but the chief minister has been hesitant or perhaps ‘too busy’ to approve the proposal. Sources said the SRB had floated summaries to the chief minister for approval so that the office of the tax ombudsman and the appellate tribunal could be set up to facilitate the taxpayers in resolving tax-related issues.
The summaries have been lying pending with the chief minister for the last few months and the issues of taxpayers remains unresolved. The approval of the summary would enable the SRB to appoint a tax ombudsman to resolve taxation matters. The appellate tribunal is direly needed by the tax collecting body, however, Abid Zawawi has been appointed as the commissioner (appeals) recently.
As the summary is approved by the provincial chief executive, the tribunal would be set up to exercise the functions conferred by Sindh Sales Tax on Services Act, 2011. The tribunal would include a chairperson and judicial and accountant members. The SRB would recommend the names of qualified people for whom the chief minister’s approval would be sought again.
A person would be appointed as the tribunal’s judicial member, who would be a qualified judge of the high court and should have remained a judge of a district court for at least five years. The government may, for three years from the day Sindh Sales Tax on Services Act 2011 comes into effect, appoint any person who has worked for a minimum of three years in the Federal Board of Revenue or the provincial Excise and Taxation Department in rank not below the Bps-20 for five years in aggregate or as collector of sales tax (appeals) under sub-section (b) of section 30 of the Sales Tax Act 1990 for three years with service of at least five years in Bps-20 as an accountant member of appellate tribunal, the sources said.
The powers and functions of appellate tribunal will be exercised and discharged by benches constituted from members of the tribunal by the chairperson of tribunal.
