House passes tax ombudsman bill

The parliament yesterday passed a bill clearing way for appointment of a tax ombudsman with judicial power to probe taxpayers' complaints in the process of tax payment.

The bill was passed by voice votes of the ruling coalition lawmakers, who rejected as many as 34 proposals placed by the three opposition lawmakers for amendments to the bill.

Finance and Planning Minister M Saifur Rahman told the House before proposing for passage of the bill that the government would consider appointing ombudsman in other sectors if the idea of tax ombudsman works.

According to the bill, the president will appoint the tax ombudsman for a four-year term and the appointee will head a separate office with necessary staff. The ombudsman will deal with NBR-related taxes including VAT, import duty and income tax.

The ombudsman is supposed to be independent in discharging the duties and can only be removed the way a Supreme Court judge is removed.

The bill provides the ombudsman with judicial power to investigate any complaint filed by a taxpayer. The ombudsman himself can probe any complaint or assign an official at his office to do the job. The authorised official can access any official documents necessary for investigation.

The ombudsman can also issue warrant asking anybody to appear at his office.

The office of the ombudsman will be a recommending body and the government is obligated to implement its recommendations. The government will have to explain the reasons in case it fails to implement the recommendations, according to the bill.

The ombudsman will receive complaints from the taxpayers and hear both the taxpayers and tax officials to resolve the disputes. If necessary, he can take help of an advisory committee to dispose of a complaint, proposed the bill.

The ombudsman can form an investigation team and direct it to raid the houses of taxpayers or tax officials if and when necessary.

If a tax official is found guilty, the ombudsman will recommend necessary action against him. If the NBR disagrees with the ombudsman's recommendations, it can explain to the ombudsman the reasons for the disagreement.

If the ombudsman continues to differ with the NBR on a particular issue, he will seek the finance minister or the president's guidance.

If a taxpayer is found guilty of making false allegation against tax officials, the ombudsman can suggest punitive actions against him.

The tax ombudsman will report annually to the president within three months of completion of a calendar year.

Before complaining against tax officials, a taxpayer will have to sign a declaration. If an issue has been dealt with by the court or pending with the court, the ombudsman's office will not deal with it.

The bill stipulates that the tax ombudsman shall be aged below 67 years. A retired judge or government official can be chosen for this post. The ombudsman will have experience in and knowledge of revenue and tax issues.

According to the NBR, only 17 lakh people in Bangladesh, with a population of 14 crore, have tax identification numbers (TIN) and fewer than five lakh pay tax. The taxpayers often complain of bribery and harassment.

VESSELS' WAIVER
The parliament also passed another bill titled "Bangladesh Flag Vessels (Protection) Ordinance, 1982" proposing another two-year extension of general waiver of taxes on the Bangladeshi vessels for smooth handling of cargoes.

The two-year general waiver is due to expire on July 11 next year.

SESSION PROROGUED
The budget session was prorogued yesterday after 22 working days amid boycott by the main opposition Awami League. The parliament in this session passed the budget for the current fiscal year.

Speaker Jamiruddin Sircar in his wrap-up speech urged the Awami League to join the next session. He also condemned the bomb attack in London and sympathised with the victims.