Friday, 21 December 2012

Only 700,000 people file tax returns: FTO

KARACHI: Federal Tax Ombudsman, Dr Shoaib Suddle, has said that if a few influential Pakistanis are punished for evading taxes, all tax evaders will begin paying their taxes. Speaking to the office bearers and members of Korangi Association of Trade and Industry (KATI), he said that due to his suo motto action to redress the complaints of taxpayers, the Federal Board of Revenue (FBR) had provided eight billion rupees to 196,000 taxpayers.

“If we are to run this country properly then everyone should pay tax on their income,” said Suddle. He pointed out the dismal tax to GDP ratio in Pakistan, which is below nine percent as against 16 percent in India and 51 percent in Sweden.

Suddle said that it was a pity that only 700,000 people filed tax returns this year. He said that the FTO office provided relief against unjust taxation. “It is, however, not an office to facilitate tax evaders,” he said.

He said that a web-based Complaint Handling System was being set up with the office of Tax Ombudsman to address taxpayer grievances. According to Suddle, 1,500 to 1,600 complaints are received every year and 80 percent of them are decided in favour of the complainants.

Suddle said that in order to eradicate widespread maladministration, a total shift in policy is required. He said that there was too much concentration of power in the FBR, which gives rise to corruption. He advocates the separation of powers.

Office bearer of the Industrial Alliance, Mian Zahid Hussain, drew attention to the grim plight of the export sector. He said that refunds had been stopped and claims of billions of rupees were stuck.

Hussain requested Suddle to take note of the situation. He further said that the audit issue had become grave as notices were being issued to businessmen in violation of the Lahore High Court’s order.

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