Most of the categories of taxpayers, particularly individuals, small businesses and opinion makers, have declared that level of transparency in the Federal Board of Revenue (FBR) is very low. Sources said here on Tuesday that the survey of the FBR on 'Integrity Perception-2011' gave different ratings to levels of transparency within the tax machinery.
A comparison of the old survey and new survey was made in the latest survey report of the company which conducted survey on behalf of the FBR. The 'survey-2011' covered integrity perception of FBR employees and level of courtesy offered by FBR employees. Target audience for the integrity perception differed in both surveys. In the previous survey, tax authorities were the only respondent to judge the integrity perception. However, all stakeholders, except tax authorities, were asked about integrity perception of FBR employees in the current study.
The level of trust of business community in the FBR was evident from the fact that a very small number, 25 percent, of respondents referred their complaints to the higher authorities while 75 percent of respondents did not refer their complaints to higher authorities. As much as 35 percent of large taxpayers and 34 percent of the agents/intermediaries referred their complaints to higher authorities. About 84 percent of trade bodies, 71 percent of small businesses, 86 percent of NGOs/opinion makers, 82 percent of medium business, 69 percent of legal experts, 65 percent of large tax payers, 83 percent of individual tax payers and 66 percent of agents/intermediaries did not refer their complaints to higher authorities.
Overall, higher level of transparency was observed by the legal experts, large tax payers and agents/intermediaries in FBR. Individuals, small businesses and opinion makers perceived low level of transparency. In the previous study, level of awareness among tax authority was 37-42 percent, whereas current study showed much better awareness level among all stakeholders, with 15 percent unaware. Overall transparency improved; 7-8 percent of tax authorities perceived high level of transparency in previous study whereas current results indicated that around 18 percent stakeholders perceived high level of transparency.
The survey said that department-wise analysis showed that around 50 percent of respondents perceived low level of transparency in income tax department. However, medium businesses, large tax payers perceived higher level of transparency. Similar trend was observed in sales tax department. Opinion of small businesses and NGO/opinion makers was on lower side whereas legal experts and large taxpayers perceived transparency at a moderate level. Most of the stakeholders, except agents/intermediaries, had no exposure to customs department where 44 percent were unaware of the level of transparency. Overall opinion was inclined to low level of transparency. However, perception agents/intermediaries supports higher level of transparency. Similar trend was observed in federal excise department.
According to the survey results, no major change was observed in the level of courtesy of income tax department: 15-26 percent of respondents rated high level of courtesy in previous and 25p ercent in the current study. However, slightly higher level of unawareness was observed in the current study. Similarly, no major deviation was noticed in sales tax department: 15-19 percent of respondents perceived high level of courtesy and assistance and same percentage was observed this time.
Regarding courtesy and assistance offered by customs staff, slight improvement was observed from 7-8 percent to 12 percent, approximately. Awareness also improved. Satisfaction level also increased in federal excise which was previously 4-9 percent approximately, and 11 percent in the recent study.
Regarding referral of complaints to higher authorities/staff, approximately 3.8 percent of taxpayers reported referring their complaints to higher tax authorities in the previous survey. However, current study showed 25 percent of the respondents indicated that they referred their complaints to higher authorities/staff. This showed that either more people had started lodging complaints, or complaints were not resolved at lower level, the survey results said.
The survey report said that 32 percent of respondents rated transparency at moderate level, 21 percent at very low level, 15 percent at low level, 15 percent at high level, and 15 percent said they did not know about the level of transparency in FBR. Detailed analysis showed that 24 percent of small businesses and 30 percent of NGOs rated transparency at very low level. About 28 to 36 percent of agents/intermediaries, individual taxpayers, large taxpayers and legal experts rated transparency at moderate level. About 27 to 38 percent of trade bodies, small businesses and medium businesses did not know about the transparency. However, around 50 percent of NGOs/opinion makers rated transparency at a low level.
Majority of stakeholders ie 26 percent, rated transparency at very low level in income tax department; 24 percent at moderate level and low level each, while 14 percent rated transparency at high level. Data trend indicated that small businesses (24 percent) and NGO/opinion makers (30 percent) perceived transparency at very low level in income tax, while legal experts (42 percent) and large tax payers (34 percent) perceived transparency at a moderate level.
Around 24 percent of large taxpayers, 20 percent of medium businesses and 17 percent of agents/intermediaries rated transparency a high level. As per new survey report, majority of overall stakeholders ie 31 percent of respondents, rated transparency at low level and 23 percent rated at very low level in sales tax department, 20 percent at moderate level and 19 percent did not know about the transparency in sales tax department.
Data trends indicated that agents/intermediaries (39 percent) and legal experts (36 percent) and large tax payers (32 percent) perceived transparency at moderate level in sales tax department whereas NGO/Opinion makers (27 percent) and small businesses (23 percent) rated transparency at a very low level. Small businesses (46 percent) trade bodies (39 percent) and medium businesses (38 percent) were unaware of level of transparency in sales tax department.
Majority of stakeholders ie 44 percent of respondents, were unaware of the level of transparency in customs department. Nearly 19 percent rated transparency at moderate level, 20 percent at low level, and 13 percent at very low level. Drilling down of unaware population showed that except agents/intermediaries (7 percent), majority of all other categories of respondents shared unawareness.
About 29 percent of small businesses and 26 percent of NGOs/opinion makers rated transparency at low level. Around 20 percent of agents/intermediaries perceived high level of transparency in customs department. Around 35 percent of overall stakeholders thought that moderate level of courtesy and assistance was offered by FBR income tax employees whereas 22 percent had no interaction, or experience, of dealing with income tax employees.
About 10 percent perceived transparency at very high level, 14 percent perceived at high level, 12 percent at low level and 7 percent at very low level. About 37 percent of large tax payers and 32 percent of legal tax payers shared the opinion of moderate level, 29 percent of large tax payers saw high level of courtesy and assistance, 53 percent of small businesses, 40 percent of trade bodies and 47 percent of agents/intermediaries did not know about the level of courtesy and assistance offered by income tax employees.
Majority of overall stakeholders ie 52 percent of overall respondents, were unaware of the level of courtesy and assistance provided by Customs department, 12 percent rated it at high level, 9 percent at low and very low level each.
Drilling down of unaware population showed that except agents/intermediaries (17 percent), majority of all other categories of respondents were unaware, 25 percent of legal experts, 34 percent of agents/intermediaries and 23 percent of large taxpayers thought that moderate level of assistance was provided. However, 23 percent of small businesses and 16 percent of NGO Opinion Makers perceived very low level of courtesy and assistance provided by Customs department, the survey report said.