Tax Ombudsman's office to be modelled on Pakistan set-up
Star Business Report
A committee headed by State Minister for Finance Shah Mohammad Abul Hossain has suggested establishment of the office of Tax Ombudsman with characteristics of similar administrative set-up in Pakistan.The committee in a draft law recommended that the Tax Ombudsman, to be appointed by the president, would report annually to the head of the state. As per the draft, the Tax Ombudsman will have the authority to consider appeals of taxpayers regarding income tax, property tax, duty and excise. However, the ombudsman will not entertain any appeal if it is a sub judice matter. The National Board of Revenue (NBR) yesterday placed the draft law along with some recommendations on Tax Ombudsman before a meeting of the Parliamentary Standing Committee on Finance Ministry. Finance and Planning Minister M Saifur Rahman in his budget speech for 2004-05 formally announced government's plan to create the office of Tax Ombudsman to handle tax-related disputes in an accountable and transparent manner. Following the announcement, the government formed the committee headed by the state minister for finance to formulate a draft law. The committee comprises NBR chairman and its members in-charge of income tax, duty and VAT (value-added tax). Earlier, in May this year, the state minister led a two-member fact-finding mission to Pakistan to study the structure and functioning of Federal Tax Ombudsman of Pakistan, set up in 1991. The mission met Pakistan Finance Minister Shawkat Aziz, Federal Tax Ombudsman Justice Salim Akhtar, Chairman of Central Board of Revenue and other high officials. After reviewing the modus operandi of the ombudsman in Pakistan, the mission suggested the draft law to be in line with the one presently practised in Pakistan. The mission found that the social justice system was strengthened after appointment of Federal Tax Ombudsman in Pakistan. However, there is no office of Tax Ombudsman in Sri Lanka, India, Nepal and Bhutan. Though general ombudsman is existent in many countries, specialised institution like Tax Ombudsman is rare. In most cases the general ombudsman handles tax-related disputes. In Australia, an ombudsman from the office of general ombudsman, better known as Commonwealth Ombudsman, handles tax disputes.
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