Federal Tax Ombudsman (FTO) Dr Muhammad Shoaib Suddle has categorically said reforms in tax administration have not helped in changing the mindset of the tax officials. In a press conference here on Friday, FTO observed that change in the mindset of officials within the tax machinery is a difficult task and it would take time to achieve this objective.
When asked whether Tax Administration Reform Project (TARP), which concluded on December 31, 2011 has brought some positive changes in FBR Human Resource Management (HRM), Dr Suddle said that I have no such feeling that the typical mind of the tax official has changed. Even the objectives of the tax administration reforms were not fully achieved. Tax evasion is on the go and broadening the tax-base is a still haunting the FBR. A lot needs to done to change the attitude of the tax officials towards the taxpayers. The reports on the outcome of the TARP itself talks about non-achievement of the reforms in the tax administration, he said.
The FBR has a culture that they do not standardise one procedure or rule for its applicability across the country. For example, if one customs ruling is applicable in Karachi, the different kind of interpretation is being done in Lahore. There is no uniformity in application of standardised procedures in all cities of the country. This was particularly witnessed in the cases of customs where discretion is involved in clearance or assessment of imported consignments, he said. FTO further pointed that the serious nature of complaints has been filed about the maladministration of customs officials.
Most of the complaints of income tax and sales tax are related to the non-payment or delay in payment of refunds. In certain cases, refunds have been withheld by tax officials without any justification and taxpayers approach the FTO for clearance of their pending refund claims. There are many complaints filed by the registered persons on the suspension of their sales tax registrations. In other cases, due process has not been followed by the tax officials while handling issues relating to the sales tax registrations.
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