ISLAMABAD: Federal Tax Ombudsman (FTO) Dr Muhammad Shoaib Suddle has decided to approach the Election Commission of Pakistan (ECP) to ensure that nomination papers of tax/bank loans defaulters should not be accepted in the upcoming elections-2013, bringing transparency in the verification process.
In a press conference after capacity-building workshop for different ombudsman organisations here on Monday, Dr Shoaib Suddle said that he would meet Chief Election Commission of Pakistan to ensure transparent mechanism, barring defaulters of taxes, bank loans and utility charges from contesting the upcoming elections.
"In my personal view, no one should become member of Parliament, who is defaulter on account of due taxes, bank loans and utility services bills both gas and electricity. He said that tax defaulters should be barred from taking part in the upcoming elections. Tax defaulters have no right to contest elections. The contesting candidates should first get clearance from the utility agencies, banks and tax department so that the defaulters of utility bills, tax payments and loans should not be able to participate in the elections. Certificates should be submitted by contending candidates that no tax liability is pending against them.
Dr Shoaib Suddle said that primarily ECP and the FBR are co-ordinating on the issue of verification of the tax details declared in the nomination papers by the contesting candidates. The nomination form has been amended and certain suggestions of the FTO office have been incorporated in the revised form. The FTO office would not interfere in the working of the ECP and the FBR, but ensure that tax defaulters should not participate in the elections.
He said that tax or bank defaulter should not be member of the Parliament which would be ensured during the verification of the nomination forms of the contesting candidates. FTO said that the FBR should make public data of 3 million potential persons, whose profiles are available with the tax department. The FBR should inform the public about these 3 million tax evaders and their particulars should be made public. The general public should know about the tax affairs of the persons, who are going to participate in the upcoming elections.
He said that the FBR claimed about data of 3 million potential tax dodgers on the basis of their pattern of consumption and having assets such as luxurious vehicles and houses in posh areas so this data should be made public. "There may be some secrecy involved for individual taxpayers but everything about public office holders should be made public to ensure transparency," he added.
Responding to a query, he said that top 15-20 tax evaders should be prosecuted every year and send to jail for committing tax evasion. This would give a clear and loud message to the general public that anyone who would commit tax evasion would be punished.
FTO has also asked the FBR to send top 15 to 20 tax defaulters behind the bars as law enabled tax authorities to prosecute those who were not paying due taxes. "I am sure that the FBR can do that if interference is removed," he said adding that there should be deterrence of placing accountability mechanism to eliminate the element of harassment on part of tax machinery.
He said that 6 percent of the population in India is paying taxes. In Pakistan situation of tax compliance is so poor that below 0.7 percent of the population is paying taxes. The low level of compliance has created embarrassing situation at the international level. Even the level of tax evasion in Pakistan is exceptionally high when compared with other tax administrations.
He said that it was matter of shame that the country was among the list of lowest number of taxpayers as in Sweden around 81 percent population paid its due taxes while in Pakistan there was only 0.7 percent population who paid taxes. In India, 6 percent population paid due taxes while in Pakistan this ratio is below one percent, he maintained.
Referring Article 218, he said that it was the responsibility of the ECP to ensure free and fair elections in the country and FTO office would assist the ECP wherever required. He said that he had written a letter to ECP for details about tax paid by them, National Tax Number (NTN), agriculture income tax paid, loans obtained from banks, other assets and utility charges such as payment of electricity and gas bills and the Commission accepted certain proposals in the new nomination papers.
"We don't want to give an impression that we are creating problems in the way of the ECP. We will assist the ECP for holding free and fair elections and I will meet the ECP high-ups for ensuring transparent mechanism for tackling the issue of defaulters of taxes, loans and utility charges in just and fair manner," FTO maintained. "The social shame on media should be given to those who are tax and loan defaulters," he said and added that you would have to ensure opening up by sharing information with masses that would achieve transparency.
He said that there was need to give certainty in jobs of tax machinery by minimising political interference. To check maladministration in the FBR, he said, the government would have to pursue reforms in tax collection machinery. The government should ensure that the Chairman FBR and his team should work for 3-4 years without any political interference. This political interference in the matters of the FBR should be stopped through reforms in the tax administration. "FBR should be taken out of the harassment mode", he added.
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