ISLAMABAD, Sept 17: The Federal Tax Ombudsman has proposed to the government to introduce taxpayers' bill of rights (TBRs) in the parliament as early as possible to restore the confidence of taxpayers.

The proposal was made by FTO Justice (retd) Saleem Akhtar in a report on "Four years on first Federal Tax Ombudsman (September 2000 to August 2004" released here on Friday.

The proposed bill is based on the US and UK models implemented in those countries recently to further strengthen their already highly-developed tax cultures. The FTO observes that there is a "flagrant violation" of established principles of taxation by the state, yet the people of Pakistan, who are the most heavily taxed in Asia, are being maltreated.

"It is high time that the government should show a conciliatory gesture by promulgating the TBRs in Pakistan." The Ombudsman said that the state must ensure protection of taxpayers' rights, transparency in utilization of taxpayers' money and implementation of a just, equitable and fair tax system.

The report says: "In Pakistan, the poor are taxed, although they have no ability to pay and the rich enjoy exemption, notwithstanding taxable activity. There is no certainty about taxes.

The administrative authorities continue to play havoc with tax laws through the infamous SRO system, while the taxpayers have been subjected to the amazing wilderness of confused laws, vulnerable to varied interpretations and authorities' explanations adding to the existing confusion."

The proposed bill must provide the right that there could be no taxation without representation; the government can commit no financial liability without the approval of elected legislature; right to protect from arbitrary or unreasonable, unjust, biased, oppressive or discriminatory decisions, processes, recommendations and actions.

The report suggested that the right to be protected from exercise of powers or the failure or refusal to do so, for corrupt or improper motives, such as bribery, jobbery, favouritism, nepotism and administrative excess; the right to be protect from neglect, inattention, delay, incompetence, inefficiency and ineptitude of the tax employees and revenue division in the tax administration or discharge of duties and responsibilities.

"The right to protect from harassment through repeated notices, unnecessary attendance or prolonged hearing deciding cases involving assessment of income or wealth; determination of liability of tax or duty; classification or valuation of goods; settlement of claims of refund, rebate or duty drawback or determination of fiscal and tax concession or exemption."

The report says the bill must provide protection from coercive methods of tax recovery in cases where default in payment of tax/duty is not apparent from the record; the right to parliamentary restraint on state expenditure above and beyond inflation and population growth; determination of duty/tax by a tax facilitator instead of the authoritarian tax collector; right to information and prompt tax assistance and electronic recording of tax audit proceedings; to keep the taxpayers information confidential.

It further ask for right to demand damages against the state or revenue department for injury caused by the wrongful or negligent act or omission of a tax employee; to guarantee unfettered right of appeal or review through an independent judicial tax appellate system.