Federal Tax Ombudsman (FTO) Dr Asif Mahmood Jah (HI, SI) has announced quick action on the complaints of the country’s taxpayers and assured us that justice would be provided in 4-6 weeks. He said that the FTO office has the authority to take action against the FBR’s maladministration and malpractices, and we ensure that the FBR implements our decisions in the true spirit. He spoke as Chief Guest during his visit to the SITE Association of Industry. High officials of his office accompanied him.
Dr. Asif Mahmood Jah said that the FTO office also oversees backlash from the FBR on registering complaints to the FTO, and to ensure that there is no such backlash to taxpayers, a Notification has already been issued. He informed the members that the FTO office received over 8000 complaints last year, of which 90pc were resolved and decisions were implemented. The FTO office keeps track of all complaints properly. With the efforts of the FTO office, FBR paid taxpayers refunds worth 17.8 billion. It is indeed an honour that the honourable President of Pakistan has ratified 510 decisions out of 590 of the FTO.
He informed the members that the FTO had already taken his motion action on SRO-350-related issues. We are also taking Own Motion Action on goods accumulated on ports on accounts of payment of customs duty. On this occasion, the honourable Federal Tax Ombudsman also announced the nomination of an Advisor from the SITE Association of Industry.
Earlier, SITE President Muhammad Kamran Arbi welcomed the honourable FTO to the Association and thanked him for sparing time to visit the Association. He briefly introduced the SITE area in Karachi and highlighted its contribution to the industrial sector and the national economy. He remarked that Dr Asif Mahmood Jah is the only bureaucrat conferred Hilal-e-Imtiaz and Sitara-e-Imtiaz, which speaks highly of his capabilities and outstanding performance.
He said there is a lack of trust between taxpayers and tax-collecting authorities. The taxpayer, in particular, is reluctant to contact tax-collecting authorities even for a genuine concern due to their miscues of authority. SMEs cannot afford to employ high-paid staff for tax returns and compliance matters.
Chief Coordinator Saleem Parekh welcomed the honourable FTO and thanked him for visiting the Association. In his brief speech, he requested the honourable FTO to take action against the officer issuing high-amount recovery notices by misusing his authority. He added that after such notices are issued, the matter ends in corruption.
Former President Jawed Bilwani welcomed the statement of honourable FTO that 90 complaints have been decided in favour of taxpayers and added that it is clear evidence of maladministration of the FBR. He said that Dr Asif Mahmood Jah is the first FTO to belong to FBR, and as such, he is in a better position to address issues related to FBR. He stressed the need to completely do away with manual processing of refunds as FBR has all the data & records electronically available and concluded that only by reducing human interaction can bad practices be controlled. He remarked that since FBR has a real-time audit system, an audit should be unnecessary.
Former President Tariq Yousuf said that the government seems to continuously negate industrialization in the country. He requested the honourable FTO to hold bad laws accountable and also hold those who are found misusing authority accountable first, which will start cleaning our system at all levels.
On this occasion, Riaz Uddin, Chairman of the Taxation sub-committee of the Association, gave a comprehensive presentation to the honourable FTO on tax-related issues faced by the taxpaying industries of the SITE area, Karachi. He, in particular, briefed the honourable FTO on the issues related to sales tax refunds, which are deliberately delayed & denied by the FBR authorities against the given timeline of 45 days. Referring to various sections of the Income Tax Ordinance and Sales Tax Act, he highlighted various issues that create problems for taxpayers and, ultimately, result in the blockage of refunds.
He prayed the honourable FTO to Redress complaints of tax maladministration promptly, justly, fairly and independently and play the crucial role to rectify the injustice currently being done to the honest taxpayers, by way of the inaction and maladministration of FBR. He suggested that the Hon’ble FTO may take its motion on systemic maladministration and pandemic issues, propping up now and then, conducting surprise and schedule inspections of tax offices, which sounds like a bad reputation.
He concluded that the FTO is the only ray of hope for industrial taxpayers who can control maladministration in FBR and requested that the FTO utilize its powers to initiate prompt inquiries, on its own motion, regarding impending issues.
As a gesture of goodwill, the Association’s Shield was presented to the Chief Guest. SVP Muhammad Hanif Tawakkal proposed a vote of thanks. Prominent among those who attended the meeting were VP Muhammad Farhan Ashrafi, Abdul Rasheed, Ex-VP KCCI Haris Agar, Abdul Kadir Bilwani, Naveed Wahid, Hussain Moosani, Haris Shakoor, Rizwan Lakhany, Junaid Rehman, Junaid Nawab, Muhammad Riaz Dhedhi and others.
Disciplinary actions MUST be initiated against all the errant tax officials whose decisions are overturned by FTO.