Federal Tax Ombudsman 'vows to eradicate maladministration' in FBR               

Addressing members of the All Pakistan Textile Mills Association (APTMA) here on Monday, he said only a fair, just, easy and efficient tax system can ensure better revenue collection, which is vital for country’s growth.   

He was welcomed by Chairman APTMA Mr. Abdul Rahim Nasir, Chairman Northern Zone Mr. Hamid Zaman, Senior Vice Chairman Mr. Kamran Arshad and Secretary General APTMA Mr. Raza Baqir.  

Dr Asif Jah said that the office of FTO is not only handling the complaints received from taxpayers but through its mechanism of own motion cases and inspections, it was hectically engaged to check maladministration in tax administration and make recommendations.   

He emphasized the point that the FTO institution provides cost free, efficient and merit based mechanism to aggrieved persons. Also, it checks revenue leakages and contribute towards ensuring a better tax collection deterrence to the corrupt tax officials.   

He said that the outreaching program of the FTO office was one of the key functions of his office. Even the President of Pakistan has directed to not only expedite it but also enhance its scope, he added.  

He further said his office would ensure the end of the culture of nonresponsive attitude of tax officers to the taxpayers, as he is issuing instructions to the Chairman FBR In this regard. FTO added that he would ensure its implementation as well.  

 FTO also sought APTMA's representation in the Advisory Committee of FTO Lahore for resolution of tax issues faced by the members of the Association.  He urged the FBR senior officers to enhance interaction with business community for an early resolution of their problems.   

On the issue of missing amounts of refund claims of the export-oriented industry, he advised the members of the Association to file complaints with the office of FTO for officially taking up the matter with FBR.   

He told the APTMA members that the office of FTO had received 3888 cases in 2020 with a disposal of 3,555 cases in the same year. The ratio of acceptance of the FTO recommendations stood at 80.03% while only 19.9% were challenged by the competent authority. He said the average disposal time was 48.61 days in 2020. The office of FTO had carried out 35 research studies in 2020 as well, he added.  

Dr. Asif Jah appreciated the role of the textile industry in the economy and exports of the country and promised to take all possible measures to attend to the issues and concerns raised by the APTMA members. He said no country can grow without facilitating its business community. He urged the trade and industry to consider the FTO office as their own advocate against high handedness by the tax functionaries. He reiterated that his office was for the service of genuine and honest taxpayers with the mandate of eliminating maladministration from the tax machinery.  

Earlier speaking on the occasion, Mr. Abdul Rahim Nasir welcomed the appointment of Dr. Asif Jah as Federal Tax Ombudsman who is an icon of honesty and public service. He thanked the Ombudsman, Chief Commissioners Inland Revenue, Chief Collectors  

Customs, Director Intelligence & Investigations, Advisors and other senior officers from FBR  and FTO for visiting the APTMA to listen to taxpayers issues.   

Rahim apprised that the textile industry is mainstay of Pakistan’s economy with 60% share in total exports and 40% share in manufacturing sector employment. With the injection of new investment of $ 5 Billion in textile sector, 100 new plants would be added during the year to provide 500,000 jobs.  

He said that with the help of Regionally competitive energy tariff of 9c/Kwh for electricity and $ 6.5/MMBTU for gas, textile sector was poised to achieve current’s export target of $ 21 Billion this year and $ 50 Billion during the next five years.  

Mr. Hamid Zaman, Zonal Chairman, APTMA highlighted major tax concerns of the business community. He severally criticized FBR circular empowering field officers with the powers of attaching bank accounts without any prior intimation. He said the said circular is contrary to scores of decisions by the superior courts that recovery can only be affected after the liability is established at least at the level of an independent forum. He added that the new circular would promote cash economy due to risks of seizing bank deposits of taxpayers by FBR.  

Zaman demanded withdrawal of the condition of payments in digital mode. He said there was no justification for substituting the existing mode of payment through crossed cheques and banking channel which are well serving the purpose of documentation of economy.  

He criticized the FBR for initiating criminal proceedings against hundreds of taxpayers simultaneously without establishing any tax fraud even in cases where full compliance of law was made and payments were made through banking channel.   

Zaman vociferously criticized FBR instruction dated October 13, 2021 disallowing trade discounts to Sales Tax Registered Retailers. He said that retail sector all over the world allows discounts to customers. He feared that non admissibility of trade discounts to registered retailers will cripple them and compel them to get themselves deregistered. He demanded immediate withdrawal of these instructions and allowing trade discounts to restore confidence among sales tax registered retailers.       

Mr. Kamran Arshad, Senior Vice Chairman presented a vote of thanks to the visiting FTO, senior FBR and FTO officers and for patiently responding to the grievances and issues raised by the member mills. He hoped that Honorable FTO will adopt all possible measures for the resolution and redressal of these grievances.      

Malik Naeem Khan, Vice President All Pakistan Aluminum Manufacturing Association, and  Malik Tallat Suhail, representative from  PCGA / FPCCI also raised the issues of their respective sectors on the occasion for the attention of the FTO.