To establish a just, corruption-free, and expanded taxation system, FPCCI President Atif Ikram Sheikh has suggested that the Federal Tax Ombudsman’s (FTO) office be used to address maladministration at the Federal Board of Revenue (FBR). He went on to say that businesses are looking to FTO to ensure they are treated fairly by the tax system.
To reform FBR in a way that satisfies businesses and the economy, Atif Ikram Sheikh argued that the tax system should be simplified, the tax base should be expanded, and the powers of tax collection and adjudication should be divided.
To ensure that FTO’s reform strategy is inclusive and effective, Atif Ikram Sheikh stressed the need to allow advisors and technocrats from various areas of the economy to join the organization. He went on to say that the FTO office had helped thousands of people with their tax and customs disputes through quick, impartial, and free resolutions.
The fundamental and tried approach of separating the judicial and executive must be implemented, as Saquib Fayyaz Magoon, SVP FPCCI, pointed out, by separating tax collection and adjudication. Maladministration, harassment, corruption, and tax evasion, he argued, will persist so long as the tax collector also serves as the adjudicator.
Despite receiving letters and other correspondence from FPCCI, Saquib Fayyaz Magoon argued that FBR was negligent in responding to the complaints, suggestions, and criticisms voiced by the business community’s highest authority. He went on to say that FPCCI is requesting that FTO pay attention to this wrongdoing and its precedent.
The VP of the FPCCI, Asif Sakhi, commented that the FTO has evolved into a genuine relief organization. He went on to say that the FTO’s impartial, merit-based, and cost-free dispute resolution processes have proven that taxpayers can be protected from taxation officers’ abuse if the laws are right and enforced properly. However, he was worried that FBR was still hesitant to implement the FTO’s judgments, resolutions, redressals, and advisory quickly enough.
The prominent paradox in the bulk import of tea, brought up by Aman Paracha, VP of FPCCI, is that only tiny packaging with printed MRP should be subject to MRP-based sales tax. It is unfair to subject bulk industrial imports to MRP; instead, they should be classified as raw material until they undergo further processing, mixing, value addition, form modification, and packaging, he added, citing the Sales Tax Act of 1990.
The business community has been updated on the mandate and performance of the office of the Federal Tax Ombudsman by Dr. Asif Mahmood Jah. He asserted that, on average, the business community’s objections are upheld 80 to 90% of the time. The complainants can choose to appeal to FTO or even submit a formal request to the Islamic Republic of Pakistan President’s constitutional office.
According to Dr. Asif Mahmood Jah, FTO is unable to formally reprimand customs and tax agents, but he can comment on instances of abuse of authority, poor management, unusual behavior, harassment, and corruption, all of which earn significant consideration.
Dr. Jah elaborated on the other duties of the FTO by saying that research, inspections, and own-motion actions are all required. Additionally, Dr. Asif Mahmood Jah has expressed his desire to reduce the current 40-day complaint response time to just 40 hours.