ISLAMABAD, July 21: The Federal Tax Ombudsman has termed the decision to choose Lahore as the base of specialized zone for textile and cement industries in Punjab and the NWFP, as arbitrary, unjust, biased and discriminatory and falling under the definition of maladministration.

The ombudsman has recommended to the Central Board of Revenue to review the decision and shift the base to Faisalabad in order to give impetus to specialization policy, and called for compliance within 120 days.

The decision came in response to a complaint filed by the president of the All Pakistan Tax Bar Association (APTBA).

The complainant had pointed out that creation of special zone in Lahore for assessment of cases of textile and cement industries was without any justification.

The ombudsman apprehended adverse affects on members of the bar as well as the taxpayers besides causing inconvenience, hardship, increase in expenses and wastage of time.

The complainant said the CBR made this decision to select Lahore only to facilitate their functionaries, not the members of the Tax Bar and the taxpayers in the textile industry.

Moreover, the newly-constituted tax zones covered only the limited companies as if limited companies alone constituted textile industry while all other units run by registered firms, and individuals engaged in similar business activity were left out.

It was submitted that 782 cases were transferred from other stations to the Lahore special zone by June 2001. It revealed that there were only eight cases pertaining to Lahore district in the zone while 60 pertained to Gujranwala, 385 to Faisalabad, 86 to Multan, 32 to areas around Multan, 31 to Rawalpindi, Sargodha, Gujrat, Chakwal and Sialkot sector, 28 to Peshawar and Swabi, 62 to Hattar area, nine to Haripur and 20 cases pertained to Islamabad.

The ombudsman observed that wisdom of the choice of Lahore as the base of special zone for textile and cement industries of Punjab and the NWFP is certainly questionable, considering the locations of mills and factories and their head offices as reflected from the foregoing figures.

It reflects that 385 units out of total of around 751 units, including cement industry, are located at Faisalabad, he observed.

He noted, besides Peshawar zone and whole NWFP, Rawalpindi zone, Sargodha zone consisting of Jhang, T.T.Singh, Bhakkar, Mianwali, etc., Multan Zone consisting of Muzaffargarh, D.G. Khan, etc., Bahawalpur zone consisting of Rahim Yar Khan, etc., and Sahiwal zone are closer to Faisalabad as compared to Lahore.

Only Gujranwala and Sialkot zones, having only 10 per cent of the total units are comparatively closer to Lahore, he added.

Thus, there is substance in the allegation, on the facts and figures supra, that the obvious choice for locating the base of such a specialized zone has been ignored, denying the benefit of firsthand direct interface with the industry, on the one hand, and jeopardizing the professional interests of the members of tax bar, on the other.

Besides, the representatives of the industry as well were not happy with the choice of Lahore as the base for specialized zone for obvious reasons.—APP