Federal Tax Ombudsman (FTO), Mushtaq Ahmad Sukhera has said that the FTO is taking all out measures to address the taxpayers’ grievances and rectify the complaints by carrying out independent investigations about Tax Maladministration.
FAISALABAD, (Pakistan Point News - 12th Feb, 2018) : Federal Tax Ombudsman (FTO), Mushtaq Ahmad Sukhera has said that the FTO is taking all out measures to address the taxpayers’ grievances and rectify the complaints by carrying out independent investigations about Tax Maladministration. Addressing the members of Pakistan Textile Exporters Association (PTEA) here on Monday, Mushtaq Ahmad Sukhera said that textile industry holds foremost importance in the economy with its 57% share in country’s exports and 8.
5% in GDP. Textile exporters are major contributors to the economy and his office will leave no stone unturned to address the core issues of exporters and industrialists. He expressed disappointment over widening of trade deficit and heavy reliance upon foreign borrowings. Country’s exports have been declined from 25 billion Dollars to 21 billion; whereas export growth of other countries in the region has increased many folds, he said.
Expressing concerning over lowest tax to GDP ratio, Federal Tax Ombudsman said that FBR has been asked to revise the criteria of tax collection system and evolve easy and simple mechanism so that people would come into tax net voluntarily instead of avoiding it. On the issue of huge pendency in refund regime, he assured his full support for expeditious processing and payment of all outstanding refunds. Responding to a suggestion of appointment of Grievance Commissioners at RTO levels, with powers to monitor progress of the complaints on daily basis and issue appropriate orders for smooth implementation to redress the grievances, he assured to work out on the proposal.
Earlier, Chairman PTEA Shaiq Jawed, in his welcome address appreciated the role of Federal Tax Ombudsman for accountability of maladministration on part of the tax authorities. Pointing out the major issues, he said that extreme cash flow crunch has squeezed the financial streams and breading the liquidity jerks as billions of rupees of textile exporters are stuck up in refund regime. Under sales tax refund regime, no RPO is issued since one year; whereas in terms of law, RPO should be issued within seven days after filing of refund claim and FBR is bound to make payment in next 15 days.
Elaborating, he said that sales tax claims u/s 66 amounts to Rs. 10 billion are stuck up since 4 years; whereas Rs. 17.5 billion are freezed in the name of deferred amounts. Similarly around Rs. 8.5 billion are stuck up on account of custom rebate from one year. Seeking FTO’s support, Shaiq Jawed said that such huge pendency in refund regime has slowed down the growth pace and if that amounts are released, exporters can deploy the capital towards expanding businesses, which in turn will help Pakistan’s export earnings grow.
He proposed that advisers may be appraised to follow time lines as defined in the Reforms Act in letter and spirit. Furthermore, FTO office should track the complaints till final disposal and implementations in a timely manner. In complaint wherein representation is filed before the President and time of 90 days has lapsed, FTO office should immediately take up the matter with the agency and ensure compliance. Later, PTEA insignia was presented to the Federal Tax Ombudsman. A large number of textile exporters were present in the meeting.
