FBR empowers chief commissioners to redress grievances

KARACHI: The Federal Board of Revenue (FBR) on Tuesday extended the power of chief commissioners to fast-track redressal of taxpayers’ grievances.

The FBR assigned chief commissioners an additional role of Inland Revenue ombudsmen to resolve pending issues of taxpayers.

The FBR directed all chief commissioners of regional tax offices to assume the quasi-official role of IR Ombudspersons and start resolving taxpayers’ grievances on war footing.

The FBR said taxpayers are facing difficulties from enrolment as taxpayer or bearing incidence of a withholding tax to return filing, audit, appellate process, payment, and refunds claims.

The FBR directed the chief commissioners to ensure that they would be the first point of contact for all existing and potential taxpayers for resolution of their problems and complaints.

“They should also ensure that even if a taxpayer has ever to go seeking redressal elsewhere, it is only after he has failed in getting the due relief from the IR ombudsperson at his doorstep,” the FBR said in a statement.

“In future, the chief commissioner’s role as IR ombudsperson would be a key indicator for his performance, and it would reflect adversely on his efficacy as a tax administrator if the number of complaints emanating from his jurisdiction and lodged elsewhere does not drastically come down over the next few months,” said the FBR.

The performance of chief commissioners has also been attached with the grievance redressal of taxpayers.

The objective of administrative shift is to improve the image of tax machinery and restore citizens’ trust in the system besides maximising revenue collection, according to officials.

Tax Reform Commission recommended such changes for confidence building of taxpayers on the tax authorities. “There is no accountability in the system and the taxpayer is dissatisfied with the multiple notices he receives and total lack of redressal mechanism,” the commission said in a report. “FBR must regain the trust and confidence of the taxpayer which it has nearly lost.”

Tax Reform Commission made recommendations to boost trust, saying that FBR would never be the most loved government organization, because it is the face of the government's power to levy and collect tax. “But it should be a respected government entity that citizens trust. Unfortunately FBR has failed on this score.”

The erosion of taxpayer trust in FBR is an even more serious issue than erosion of tax payer service. By deploying sufficient resources the quality of taxpayer service can quickly be reversed to an upward trajectory.

“But if trust is lost, it will take years for the trust to be rebuilt and in that period the taxpayer will convey his bad experience to other potential taxpayers who will not enter the tax net,” said the commission.