The Federal Tax Ombudsman (FTO) has refunded taxes worth Rs 9.5 billion during last year with 45 percent increase as compared to the previous years. A total of Rs 2.2 million refund cases had so far cleared in the last year, while applications received with ratio of 1,550, which was essential to be deposed off within 45 days.
"The pearl system was the mother of all ills, which causes creating problems in refunding and other issues," Dr Muhammad Shoaib Suddle said while addressing talking to members of business community during his visit to Sarhad Chamber of Commerce and Industry here on Friday. The FTO said the central bank had borrowed $300 million for introduction of pearl system, according to him, which was completely failed.
As per inquiry report of FTO, he said the more than 7,922 containers bounded to Afghan Transit Trade (ATT) containers robbed, in which 80 percent cargo truckers missing from Karachi port. After stealing of ATT-containers, he informed that Federal Board of Revenue had inflicted a losses of Rs 27 billion since 2011, and 27 months. He said FTO had asked the FBR and National Accountability Bureau to take only action against involved people, instead of inquire from the other stakeholders regarding this issue.
Opposing the tax amnesty on non-custom paid vehicle, Dr Shoaib said the initiative was violated the right of legal tax payers. While taking strong notice regarding blocking of disbursement of refunding by Sarhad Chamber of Commerce and Industry, he assured the business community to conduct inquiry of blocking of the system from Regional Tax Office, Peshawar. He asked the chamber to directly submit cases of refunding and withholding taxes along with collective complaints to Federal Tax Ombudsman.
The chamber president, Dr Mohammad Yousaf Sarwar, vice presidents, Malik Iftikhar Ahmad Awan, Mohammad Anees Ashraf, executive members, industrialists and businessmen were present on the occasion. While speaking on the occasion, Dr Yousaf Sarwar raised the issue of delaying in refunding of sale and income taxes, saying that the refunding has been blocked for last six months. He urged the Federal Tax Ombudsman to take immediate notice of this issue and conduct an inquiry against the blocking of refunding from the long time.
Dr Yousaf also raised the issue of multi-pay audit, adding that there was no need of mutual audit in presence of STARR and CREST system. He appreciated the efforts of FTO for facilitating business community. He suggested that the FTO should take measures for introduction of business friendly reforms and improvement in tax collection system.