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The timely intervention of the Federal Tax Ombudsman (FTO) Office has enabled the registered taxpayers to get Rs 8.23 billion back in the form of refunds in 2013 against Rs 9.78 billion refunded in 2012. This has been mentioned in the annual performance report of the Federal Tax Ombudsman for the year 2013 presented by the FTO Abdur Rauf Chaudhry to the President Mamnoon Hussain, here on Friday.
According to the report, during 2013 the FTO Secretariat attained new heights in service delivery. In 2013, the FTO received 1898 fresh complaints as compared to 1689 fresh complaints received during 2012. As many as 886 (46.68 percent) of the fresh complaints received during 2013 pertained to income tax, 721 (37.98 percent) to sales tax, 281 (14.81 percent) to customs and to (0.53 percent) to federal excise. As many as 1594 fresh complaints and 262 complaints pending from 2012 were decided making a total of 1856 complaints decided in 2013, in addition 73 review petitions were also decided during 2013. Out of 1856 complaints decided during 2013, 1438 (77.48 percent) ended up in favour of taxpayers. 84.21 percent of the FTO's recommendations were accepted by taxpayer and the FBR in 2013 compared to 86.29 percent accepted in 2012, 81.16 percent accepted in 2011, 76.82 percent accepted in 2010 and 77.79 percent accepted in 2009. Significantly, the taxpayers' grievances in as many as 524 out of 1856 complaints decided in 2013 were redressed at the investigation phase. The number of grievances redressed at investigation phase was 493 in 2012; 399 in 2011, 367 in 2010 and 151 in 2009.
The average time taken in decide a complaint was 54 working days in 2013, as compared to 48 days in 2012; 60 days in 2011, 07 days in 2010 and 117 days in 2009. The main reasons for increase in average disposal time in 2013 were (i) increased workload, (ii) complicated complaints and (iii) paucity of investigation and support staff.
The report said that a sum of Rs 8.23 billion was got refunded to the taxpayers in 2013 through FTO intervention as compared to Rs 9.787 billion refunded in 2012. As many as Rs 7.889 billion refunded during 2011, Rs 7.080 billion refunded in 2010 and Rs 0.094 billion refunded in 2009. out of the total amount of Rs 8.23 billion involved in 178,617 claims got refunded through own motion notice by the FTO, as compared to Rs 8.83 billion refunded in 231,250 cases in 2012, Rs 6.625 billion refunded in 181,880 cases in 2011, Rs 4.90 billion refunded in 194,056 cases in 2010. In 2009, however, no claim of refund or duty drawback was settled on own motion intervention by the FTO. In 2013, the taxpayers also received a sum of Rs 58.38 million in compensation for delayed payment of refunds in seven cases.
In pursuance of the FTO's recommendations to address the systemic issue of delay in settlement of tax refund and duty drawback claims, the FBR has been constantly improving the system of refund settlement. Therefore, many more tax refund and duty drawback claims may have been expedited by the FBR due to the FTO recommendations. However, a lot more needs to be done by the Revenue division, the FBR and there field offices to fully eliminating the systemic problem of delay in refund claim settlement process, dispute resolution, and redressing grievances of the taxpayers.
In addition to disposal of 1856 complaints formally docketed for investigation, 80 complaints were informally disposed of, redressing the taxpayers' grievances without formal investigation. In such complaints, the element of maladministration is usually too apparent to be contested by the FBR or its field offices. The report said that the performance of the FTO Secretariat during 2013 indicates effective service delivery to the taxpayers aggrieved by tax maladministration. Significantly increased number of complaints received and decided during 2013, also reflects greater faith of taxpayers in the FTO mechanism far prompt redressal of their grievances.
Experience has shown that the less influential, weak and vulnerable citizens are the greatest victims of maladministration by public functionaries. The Ombudsman mechanism is being used with advantage to protect the interests of the less influential taxpayers. The own motion interventions by the FTO in cases of maladministration and systemic problem solving strategy reflect a proactive approach to redressal of taxpayers grievances.
The FTO Secretarial is working hard, in co-ordination with other federal and provincial Ombudsmen, at the platform of the Forum of Pakistan Ombudsman (FPO), to reduce the tolerance level of the citizens for in maladministration and also to allay their fear of reprisals by public functionaries.
All possible tools of advocacy are being used to enhance public awareness about the effectiveness of Ombudsman mechanism, which is increasingly being recognised as an effective accountability mechanism for promoting good governance. A lot more needs to be done to harness the complementarities of the Ombudsman mechanism with other oversight institutions to reduce maladministration and promote good governance in the country.

Copyright Business Recorder, 2014

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