NBR to ask its officials to carry out Tax Ombudsman's orders
Saturday, 3 May 2008
Doulot Akter Mala
The National Board of Revenue (NBR) has decided to cooperate with the Tax Ombudsman's office in its drive to create awareness among the taxpayers about filing complaints against corrupt taxmen.
An effective move of the NBR will strengthen activities of the Tax Ombudsman's office, which is failing to get satisfactory response from the taxpayers, an official source said.
According to the Tax Ombudsman Act 2005, the Tax Ombudsman is empowered to investigate allegations against taxmen and forward its recommendations to the NBR for taking action.
The NBR will now give instructions to field level officers on implementation of Tax Ombudsman's order. It will also assign a senior official to follow-up the Tax Ombudsman's recommendations. The officer will also be responsible for maintaining a liaison with Better Business Forum (BBF) and Regulatory Reforms Commission (RRC).
These decisions came at a close-door meeting between the Tax Ombudsman and the NBR chairman early last week.
This was the first such meeting after the establishment of the Tax Ombudsman's office in 2005.
There is lack of co-ordination between the NBR and the tax ombudsman's office on implementation of Tax Ombudsman's recommendations, Tax Ombudsman Khairuzzaman Chowdhury told the FE.
However, it is not clearly mentioned in the NBR's law about whether the field level offices are liable to take necessary actions on the basis of Tax Ombudsmen's recommendations, he added.
"I had suggested inclusion of a provision in the current fiscal budget on mandatory implementation of Tax Ombudsman's recommendations at the field level office of the NBR, but it was not taken into consideration," he lamented.
He expressed his hope that the government would take effective measures in the upcoming budget for fiscal 2008-09.
Talking to the FE, NBR chairman Mohammad Abdul Mazid said: "There was a communication gap between the two offices in the past, I am trying to minimise the gap through initiating some effective measures."
The activities of both the offices will be streamlined with implementation of those steps, he added.
"The activities of the Tax Ombudsman's office are complementary to that of the NBR. The concept of Ombudsman is new in the country. So, there is a lack of knowledge of both taxpayers and taxmen about activities of the office," the NBR chief said.
On amendment to the NBR law, Mr. Mazid said he would try to bring an amendment to the existing law and incorporate in the budget for fiscal 2008-09 regarding field-level implementation of Tax Ombudsman's order.
Interrelation between the two bodies is needed for ensuring better tax compliance in the country, he said.
A large section of taxpayers go to court with complaints although the Tax Ombudsman is there to resolve them.
The Tax Ombudsman's office received only 42 complaints in 2007. Of which, it has resolved 33 complaints, said a recently published Tax Ombudsman's annual report 2007.
Absence of the government's clear instruction on mandatory implementation of Tax Ombudsman's order has been creating problems in smooth functioning of the office, official source said.
Taxpayers said if the NBR does not implement the recommendations of tax ombudsman, harassment of the taxmen might increase.
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has also proposed enhancement of power of the Tax Ombudsman's office in the next fiscal budget.
In the proposal of budget consultative committee, the FBCCI said the Tax Ombudsman should be empowered to give final order.
The law has empowered the tax Ombudsman to deal with any malpractice regarding NBR-related taxes -- VAT, import duty and income tax.
The government has constituted such a body aiming to ensure accountability and transparency in the tax administration.
The National Board of Revenue (NBR) has decided to cooperate with the Tax Ombudsman's office in its drive to create awareness among the taxpayers about filing complaints against corrupt taxmen.
An effective move of the NBR will strengthen activities of the Tax Ombudsman's office, which is failing to get satisfactory response from the taxpayers, an official source said.
According to the Tax Ombudsman Act 2005, the Tax Ombudsman is empowered to investigate allegations against taxmen and forward its recommendations to the NBR for taking action.
The NBR will now give instructions to field level officers on implementation of Tax Ombudsman's order. It will also assign a senior official to follow-up the Tax Ombudsman's recommendations. The officer will also be responsible for maintaining a liaison with Better Business Forum (BBF) and Regulatory Reforms Commission (RRC).
These decisions came at a close-door meeting between the Tax Ombudsman and the NBR chairman early last week.
This was the first such meeting after the establishment of the Tax Ombudsman's office in 2005.
There is lack of co-ordination between the NBR and the tax ombudsman's office on implementation of Tax Ombudsman's recommendations, Tax Ombudsman Khairuzzaman Chowdhury told the FE.
However, it is not clearly mentioned in the NBR's law about whether the field level offices are liable to take necessary actions on the basis of Tax Ombudsmen's recommendations, he added.
"I had suggested inclusion of a provision in the current fiscal budget on mandatory implementation of Tax Ombudsman's recommendations at the field level office of the NBR, but it was not taken into consideration," he lamented.
He expressed his hope that the government would take effective measures in the upcoming budget for fiscal 2008-09.
Talking to the FE, NBR chairman Mohammad Abdul Mazid said: "There was a communication gap between the two offices in the past, I am trying to minimise the gap through initiating some effective measures."
The activities of both the offices will be streamlined with implementation of those steps, he added.
"The activities of the Tax Ombudsman's office are complementary to that of the NBR. The concept of Ombudsman is new in the country. So, there is a lack of knowledge of both taxpayers and taxmen about activities of the office," the NBR chief said.
On amendment to the NBR law, Mr. Mazid said he would try to bring an amendment to the existing law and incorporate in the budget for fiscal 2008-09 regarding field-level implementation of Tax Ombudsman's order.
Interrelation between the two bodies is needed for ensuring better tax compliance in the country, he said.
A large section of taxpayers go to court with complaints although the Tax Ombudsman is there to resolve them.
The Tax Ombudsman's office received only 42 complaints in 2007. Of which, it has resolved 33 complaints, said a recently published Tax Ombudsman's annual report 2007.
Absence of the government's clear instruction on mandatory implementation of Tax Ombudsman's order has been creating problems in smooth functioning of the office, official source said.
Taxpayers said if the NBR does not implement the recommendations of tax ombudsman, harassment of the taxmen might increase.
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has also proposed enhancement of power of the Tax Ombudsman's office in the next fiscal budget.
In the proposal of budget consultative committee, the FBCCI said the Tax Ombudsman should be empowered to give final order.
The law has empowered the tax Ombudsman to deal with any malpractice regarding NBR-related taxes -- VAT, import duty and income tax.
The government has constituted such a body aiming to ensure accountability and transparency in the tax administration.