Karachi: The Federal Tax Ombudsman (FTO) Dr Shoaib Suddle has advised that the FTO should have powers of the high court level so that its decisions could be implemented in letter and spirit.
Speaking as chief guest at a luncheon meeting hosted by Chairman FPCCI Standing Committee on Sales Tax and President All Karachi Industrial Alliance, Mian Zahid Hussain, he said that tax collection potential of Pakistan could be around Rs 4-5 trillion. There are loopholes and pilferage in the taxation system and resultantly the FBR is only collecting one third of the actual tax potential.
The FTO said that his office has taken action on 150,000 cases and so far decided majority of the cases already. FPCCI President Haji Kadir Sherani, former President, Tariq Sayieed, Chairman, Korangi Association of Trade and Industry, Ehtesham Uddin, FPCCI’s former Vice President, Eng. M A Jabbar, CEO KITE Ltd, Masood Naqi, Vice Chancellor Indus University, Khalid Ameen and others were also present on the occasion.
He however said that if the FTO would be given powers equal to the superior courts, the petitioners could get justice aptly. He said that over 90 per cent cases were decided in favour of petitioners who successfully got their refunds back. “After the FTO took suo moto notice of the cases first time in 2010 since its establishment started investigations involving matters indicating underlying systemic or major service-delivery issues” Dr Suddle said.
FTO got settled hundreds of sales tax cases and another 805 cases of held up bank guarantee and the petitioners got refunds of millions of rupees. He said that 194,056 duty draw-back customs cases involving refunds of Rs 4.904 billion were also settled by FTO and further amount of Rs191 million was refunded in 70 sales tax cases.
Explaining the issues relating to refunds, he explained that the fine performance of the FTO Office is evident from the fact that total refunds got issued to taxpayers in 196,015 cases. Dr Suddle said that 90 per cent percent of decided complaints ended up in favour of the taxpayer.
This means that out of every five complaints, four are decided in favour of taxpayers on the basis of merit where relief is necessary for the taxpayers. Around 70-72 percent of the FTO orders are implemented by the FBR. The cases involving big amount of refund etc and strict disciplinary action against the tax officials in certain cases are not implemented by the FBR. In certain cases, the FBR file representation to the President against the orders of the FTO. Around 80 percent presentations of the FBR are turndown by President.
Earlier, Mian Zahid Hussain said in his welcome address that FTO is playing vital role in extending relief to the aggrieved taxpayers and stakeholders have taken a sigh of relief as FTO takes no time to hear their petition. He said that while the office of FTO is playing an increasingly pivotal role in addressing taxpayers’ grievances against tax maladministration, the problem is systemic and needs concerted efforts on the part of the FBR. He agreed with Dr Suddle that FTO office should have powers to the level of high court.
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