LAHORE – Federal Tax Ombudsman Dr Shoaib Suddle has said that the Federal Board of Revenue (FBR) provided relief of Rs 7.0 billion to 196,000 taxpayers after he took a suo motto action to address genuine complaints. The Federal Tax Ombudsman was speaking at the Lahore Chamber of Commerce and Industry (LCCI). LCCI President Shahzad Ali Malik, Vice President Sohail Azhar, former President Mian Muzaffar Ali, former Vice President Aftab Ahmad Vohra and a number of executive committee members also spoke on the occasion. Suddle said that the tax ombudsman office provides relief against unjustified taxation by tax collectors.
“It is, however, not an office to facilitate tax evaders” he clarified. He noted that in some cases the tax collectors need to be empowered to nab tax evaders and they need a free hand in this regard. He regretted that tax compliance in Pakistan is very low. Against global Tax to GDP ratio of 25-30 percent and this ratio in Pakistan is below nine percent. He said that a Web-based Complaint Handling System is being setup with the office of Tax Ombudsman soon to address taxpayers’ grievances efficiently.
He stated that abuses by tax collectors are often not reported. “You should raise your voice against such malpractice when the services of the tax ombudsman are available to you.” Suddle said that the institution of Tax Ombudsman is working on two principles which are that justice must be inexpensive and it should be delivered expeditiously with a maximum focus being given to the resolution of the matter instead of its disposal. He said that 1,500 to 1,600 complaints are received every year and out of that total 80 percent end up in the favour of complainants, which represents the inefficiency of the tax machinery.
It was noted that concerted efforts are needed on the part of Federal Board of Revenue (FBR) to alleviate the sufferings and agony of taxpayers. He said that in order to get rid of widespread maladministration a total shift is required in the policies, as the approach is still based on old colonial systems and practices. He said that there is too much concentration of powers in FBR, which gives birth to corruption. There should be separation of powers and multiple functions should not be performed. Dr Suddle said that the functions of Ombudsman’s office need to be spread to all corners of the country so that people know that tax functionaries were held to account by the ombudsman.
Speaking on the occasion, the LCCI President Shahzad Ali Malik said that good governance is equally important in all walks of life but its significance gets much critical in those institutions which are meant for arbitration. The confidence of the business community and foreign investors, in particular depends a lot on these institutions and their ability to deliver justice and act as impartial arbitrators. He said that the system required rapid reforms to improve the governance and develop better image of public sector. Malik stressed that the entire tax system is complicated and burdensome which creates room for complicities between taxpayers and the tax collectors.
The business community feels that tax system should be transparent and the tax collection officers should have no discretionary powers which undermine fair play. He urged the Federal Tax Ombudsman to play a role in bringing an end to discretionary powers of tax officials but also minimise abuse of the law and its process. The LCCI president said that the business community acknowledges that the institution of Federal Tax Ombudsman is playing a great role in putting affairs in order but it must assert its authority to the eliminate corruption and harassment in the tax collecting process.
