Experts for separation of tax policy, revenue admin

Experts, policymakers and business leaders have laid stress on tax reform and separation of tax policy department and revenue administration aimed at ensuring business-friendly environment, curbing evasion and enhancing the credibility of taxpayers.

At a seminar organised by the National Board of Revenue (NBR) on Monday, they also emphasised the importance of collaboration with the stakeholders in reforming the policy so that trust deficit can be reduced.

The experts called for widening the tax net at expected level and meting out exemplary punishment for those officials who are involved in offences.

The call came from the seminar organised at Bangabandhu International Conference Centre in the capital.

At a panel discussion Nihad Kabir, Chairperson of the Trustee Board of Business Initiative Leading Development (BUILD) said, “The revenue board will have to incentivise good taxpayers, but we see the same tendency and curiosity about leakages and evaders.”

“Also the NBR has to ensure exemplary punishment for those officials who are involved in crimes.”

Stressing on the separation of the policy and administration, Kabir said, “The NBR should be independent and special institutional body like other commissions and boards and the chairman should be appointed on a long-term basis that we did not get most of the time.”

Asif Ashraf, director of Bangladesh Garment Manufacturers and Exporters Association, stressed on the matter and said, “This is a sort of problem that they collect taxes and reform policy as well.

“The tax policy and the tax administration should be separated.”

“We are in fear during showing our profit in the field office because the officials could pressurise us next year based on profit of this year even we would witness less profit or negative growth in the coming year. That is why some businessmen do not want to disclose their profits fully,” Ashraf shared.

While speaking as the special guest, Comptroller and Auditor General of Bangladesh Mohammad Muslim Chowdhury echoed the same and said, “NBR has to analyse the tax policy and reduce trust deficit with enhancing professionalism of tax officials.”

Federation of Bangladesh Chambers of Commerce & Industry vice-president MA Momen said, “We hear every year from the NBR that they found a lot of taxpayers after analysing the data.”

“Why did not the revenue board bring them under the tax net?” he questioned.

Local Government, Rural Development and Cooperatives Minister Tajul Islam as the chief guest said, “NBR has to create a business-friendly environment and grow such mentality to help the businessmen and create employments.”

The minister stressed that the officials should focus on the expansion of the tax net and reduction of harassment at the customs houses.

NBR chairman Abu Hena Md. Rahmatul Muneem presided over the programme. Two field commissioners presented the keynote papers on the tax administration while field officials and stakeholders were present.

While speaking at another seminar on the day, Agriculture Minister Muhammad Abdur Razzaque said a huge amount of money is being laundered from Bangladesh to different countries, including Canada’s Begumpara and the UAE’s Dubai.

“Anyone now can easily launder money abroad in various ways, including under-and over-invoicing. It should be stopped strictly,” he said.

The National Board of Revenue (NBR) organised the seminar titled “Bangladesh Customs: Chariot of Smart Bangladesh Building” at the same venue on the occasion of “Revenue Conference 2023”.

The minister said the NBR officials should take decisive action to prevent money laundering from the country.

Razzaque, however, said although revenue has increased a lot in Bangladesh compared to previous years, it is still very low in comparison with the tax-GDP ratio. “This ratio should be increased. We have not been successful in income tax collection yet. Therefore, the capacity and efficiency of the revenue department should be increased too,” he added.