Harassment still affecting tax collection: Muhith:Daily Sun

Finance Minister AMA Muhith leads a colourful procession of taxmen in the capital on National Income Tax Day on Monday as part of a bandwagon taken to make public awareness of giving tax. sun Photo Finance Minister AMA Muhith Monday said harassment is still there in the tax collection process, which has created a fear among the people in paying taxes. The minister also said the government has been
working hard to remove the fear and lessening harassments in the tax collection process. Mentioning that tax collection in Bangladesh is the lowest among the Asian nations, the minister also said the earning is, however, increasing gradually. The minister made the remarks while addressing a ceremony organised by the National Board of Revenue (NBR) to mark the National Income Tax Day-2014 and accord reception to the highest and long-term Tax payers at the Pan Pacific Sonargaon hotel in city. “Wider influence of poverty causes lower tax collection. During the 1970s, at least 70 percent people were below the poverty line, national wealth was of very low standard. We have reached to today’s position by overcoming all these obstacles— the credit goes to the general people,” Muhith said while addressing the function. He said the government collects tax for serving the people and people also pay tax from a sense of social responsibility, with a feeling of “I am doing something for my nation”. He claimed that the government has significantly increased the revenue collection in the last five years, and the demand and allegations of people regarding the tax collection process have also come down during this period. Mentioning the Income Tax Act is good Law, Muhith opined that this law adjusts the financial capability of people. He also stressed the need for turning both the processes of collection and payment of income tax into a friendly and flexible one so that people become more interested in paying tax. He laid emphasis on changing attitude of the tax collectors as part of the efforts to achieve this goal. The finance minister said in the last 8 years, huge qualitative changes have taken place in the tax collection and payment system and the fruit of that is now visible as more tax is being collected than the previous years. “Currently, most of the tax earnings come from the income tax category, which in the past came from customs. In near future, we will see a free trade world, then Income Tax will be first and VAT will be in second position in terms of generating income. User Tax will be added then”, Muhith added. He further said “When the state goes for more works related to people’s welfare and better services to the people, it needs more income. If the number welfare works get higher, people will be inspired to pay more tax, and such a scenario will be seen in Bangladesh in the near future.” NBR Chairman Md Ghulam Hussain presided over the ceremony where FBCCI president Kazi Akram Uddin Ahmed was also present as special guest, among others. Member of NBR Bashir Uddin Ahmed delivered the address of welcome at the function. Among the recipients of Tax Card, lawmaker Gazi Golam Dastagir addressed the function. While addressing the function, FBCCI President Kazi Akram Uddin Ahmed said the businessmen want to pay more and more tax, but a friendly environment is necessary for this. “If there is no effective intention for rendering services, the expected goal will not be achieved” the FBCCI President said, urging the Tax Officers to improve their behavioral pattern to the tax payers. He also said there is a scope to increase tax collection from the businesses by at least 3 times through proper management, friendly procedures and also by making the payment system more convenient. Tax Card winner and highest tax payer Gazi Golam Dastagir MP urged the Tax officials to spread out up to all the 500 upazilas across the country to find new tax payers instead of concentrating to the large-scale tax payers in Dhaka or big cities. He also said lots people remain out of the tax net despite having the financial ability to pay tax. During the function, NBR awarded Tax Cards to a total of 20 highest tax-payer companies and 20 highest tax-payer individuals (10 from each category) for the year 2013-14 and 2012-12. The tax authority also accorded reception to the highest and long-term tax payers from the district level. Finance Minister AMA Muhith handed over the Tax Cards and mementos to the award recipients.