Justice Munir Ahmed Sheikh, Federal Tax Ombudsman (FTO), informed the business community here on Tuesday that Tax Ombudsman organisation would soon send the 'taxpayers rights protection bill' for consideration of the Law Ministry.
Speaking at a meeting of Karachi Chamber of Commerce and Industry (KCCI), he said that the Tax Ombudsmen Ordinance has given powers to propose amendments in the tax laws.
He said that draft of 'taxpayers protection bill' has already been prepared. He said that the proposed bill would be discussed with representatives of chambers and other trade bodies, and when finalised, it would be sent to Law Ministry for consideration and adaptation.
He said that the proposed bill would give right to taxpayers to ask the government about amount of tax collection, and where it was utilised. Taxpayers will have the right to ask the government about increase in taxes and its justification, etc.
Munir said that during the last 5-6 years, since the establishment of Tax Ombudsman office, more than 8000 complaints had been filed by the aggrieved taxpayers, out of which 95 percent had been disposed of by the end of April 2006.
He said that the Tax Ombudsmen organisation had allowed tax refund of around Rs 3.21 billion during this period.
He said that there were a very large number of pre-shipment inspection fees refund claims pending since long. "This organisation has decided these cases and customs department paid refunds in 10,000 cases."
The Ombudsman said that a few years back, on the decision of Federal Ombudsman, the government had made some changes in the Customs Act but the custom authorities did not allow their implementation in favour of importers.
However, when the matter was brought in the knowledge of Tax Ombudsman organisation the matter of provisional assessment for finalisation, the FTO issued clear instructions in the cases and resolved the matter.
He said that FTO has the power to get its decision implemented. In case of non-implementation, the FTO can issue contempt of court notice and transfer the officials. He said that the FTO can also send a report to the President for consideration and issuance of necessary orders in case of non-implementation of FTO's decision.
Welcoming the guests, KCCI President Haroon Farooki noted that the present system of adjustment of tax appeals does not conform to the dictates of justice because the member of tax appellate tribunal are subordinates of CBR, and are prejudiced in deciding the cases.
He said that the trade and industry, therefore, demands to separate the tax judicial system from the tax collection so that independence of judiciary is established and the influence of the executive on decision-making in tax appeals in prevented.