KARACHI, July 27: Federal Tax Ombudsman justice (rtd) Saleem Akhtar on Tuesday said that the ongoing process of reforms in the Central Board of Revenue should focus on creating spirit of confidence by removing mistrust between tax collectors and taxpayers.

Speaking at a seminar on "tax laws" organized by the Collectorate of Port Mohammad bin-Qasim here, the FTO said it was necessary to change the mindset of the tax collectors as well as the taxpayers as both had to discharge their obligation towards the nation.

"It was ironic that even after over half a century as an independent state, the inherited colonial mentality could not be washed off and our tax collectors are still working on old British system," the FTO observed.

Similarly, Mr Akhtar said the taxpayers were also looking at the tax collectors as colonial rulers who should be defied and not even a penny should be paid towards tax collection. There was an urgent need to change the mindset of both the sides so that national obligations of an independent nation could be met, he added.

In order to achieve this goal, the FTO suggested that it was necessary that an atmosphere of trust and confidence be built at all levels. He further said that tax collection was not the only duty for a revenue man but he was equally responsible to collect only just and due tax from the people.

Referring to the role of the FTO offices, he said it was designed to minimize present maladministration and provide relief to public and bring reforms. He said the tax department had developed a habit that it was there only to realize tax and meet its revenue targets, but it was equally necessary that only due tax was collected.

Mr Akhtar said the FTO offices established in August 2000, and in a short period of four years, it disposed of 5,663 cases with major results providing relief to the taxpayers.

The FTO said that he had submitted a report to the president and the prime minister, suggesting some reforms in the revenue collection system. "There is a need to bring a change in the mindset of tax collectors and secondly training of officers and other staff is equally important if required results are needed," he added.

However, the FTO agreed that the needed change in revenue collection and approach of officers had already started to change as the last two years' reforms agenda in the CBR began to give some results.

Earlier, collector of Customs, Port Mohammad-bin-Qasim, Amir Mohammad Khan Marwat, highlighted the features of the seminar and said it was basically arranged to impart education and create awareness among the tax collectors, the taxpayers, trade and industry.