Daily Times

ISLAMABAD: As many as 760 complaints regarding double taxation regarding income tax have been lodged against Federal Board of Revenue (FBR) with Wafaqi Tax Ombudsman (WTO).

During current year 2016, 425 complaints have been filed against FBR with reference to tax, 235 sales tax, 108 customs and 2 complaints with regard to federal excise duty.

Sources told Daily Times that 760 complaints were received against the FBR during five months and WTO has started disposing of the complaints as per tax law. Maximum complaints have been received with regard to levying of illegal tax by FBR.

They said the complaints filed with WTO against FBR with reference to sales tax said that tax has been increased illegally and double tax has been imposed. Likewise 108 complaints have been filed against customs for levying illegal customs duty.

Sources said that 220 complaints have been registered from Karachi region, 80 from Lahore region, 22 from Islamabad region, 80 from Islamabad region, 125 from Faisalabad region, 35 from Multan region and 70 from other regions.

Sources further disclosed that government and semi government departments have also filed complaints against FBR this year stating that FBR has withdrawn income tax amount from bank account directly without issuing any notice. These departments have complained that amount equal to two times income tax has been drawn from the bank accounts directly by FBR in order to achieve tax collection target.

During 2015 70 per cent complaints were decided in favour of complainants and decisions on most of the complaints are likely to come against FBR this year too. 1509 complaints were received during 2015 and 1224 complaints were disposed of. FBR had to refund Rs 735 million to the complainants due to WTO decisions.

Sources said WTO has decided to dispose of the complaints against illegal recovery of tax by FBR immediately and has geared up the pace of work to provide immediate relief to the citizens.

Traders from Karachi, Lahore, Faisalabad and other regions have approached WTO against illegal recovery of tax by FBR.

On the condition of anonymity traders told Daily Times that FBR withdrew million of rupees directly from the bank accounts of companies and corporations in the name of income tax under income tax ordinance which has caused heavy loss to business community. Notices are issued before withdrawing amount from bank accounts but FBR withdraws amount directly to achieve its targets.