Sohail's removal draws mixed reaction

Tax officials, bar members and the business community on Tuesday coherently articulated mixed reaction over the removal of Sohail Ahmad as Chairman of the Federal Board of Revenue (FBR). According to a survey conducted by Business Recorder, the tax officials were resentful of his administrative policies.
They termed the ousted chairman as an awful administrator, saying that the policies, which were made during his tenure, had faced divergent opinions many times. They said that the board had earlier defined area-wise jurisdictions of the tax departments, which was later amended to sectorial-based jurisdictions by outgoing FBR chairman Sohail Ahmad.
They lamented the said decision, which was aimed at broadening of tax base and to plug revenue leakages, and made tax departments ineffective to perform their statutory obligations. They said that since the said decision was made, the tax departments had not only failed to show remarkable performance in recoveries but also appeared toothless in raising tax demands.
Commenting on the newly launched Expeditious Refund System, they said the former chairman had introduced the said system, which has yet not produced desired results but is providing severe financial shocks to the national exchequer in terms of refund payments on fictitious claims.
Khushnood A. Khan, President of Karachi Sales Tax Bar Association (KSTBA), said that Sohail Ahmad was appointed as FBR chairman from backdoor, as he neither had any working background pertaining to tax issues nor any financial knowledge. He said the performance of the tax collecting authority was declining on account of tax collection, tax compliance and resolution of tax payers' grievances since he was appointed as chairman of FBR.
He requested to the newly appointed chairman to resolve the issues related to FBR's web portal, taxpayers' registration, audit, illegal blocking of taxpayers and compliance of tax deposits. President of Income Tax Bar Association (ITBA) Ali A Rahim opined that the said reshuffle in key economic positions sent a message of uncertainty to the financial markets and international lenders.
He added that the said rearrangement also depicted that the authorities concerned had no plan to deal with helm of economic affairs. He requested the new appointed chairman of FBR that the excessive power of tax collecting authority should be reduced and more reliance be put on taxpayers.
"Power corrupts, and absolute power corrupts absolutely," he quoted a saying. However, the business community was of the view that the removal of Sohail Ahmad would make no difference for them unless the new chairman would sincerely pay heed to their complaints and consider their suggestions and recommendations as policy matters.