Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Friday, July 5, 2019 10:38:01 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Tax collection burdensome for ordinary taxpayers

Share your thought
Post a comment »
Read all () »

Kazi Zahidul Hasan :
Analysts, individual taxpayers and businessmen have urged the government to build a fair tax system in order to encourage and support all taxpayers in complying with their obligations.
Terming the current tax system as 'arbitrary,' they urged the government to design a fair tax system that is equitable for all taxpayers.
They also raised the issue of mass harassment by taxmen in the name of tax collection.
"The current tax system is arbitrary and riddled with anomalies. Even, the innocent individuals are harassed by the taxmen in collecting tax," Monir Hossain (not real name), who has been paying tax for the last several years, told The New Nation.
"So, expansion of tax net should not be a top priority, rather it should be reforms."
"We are paying tax for nation building, but getting no return," said taxpayer Raju Ahmed.
He said: "I am paying 15 percent tax on my income. The government spends most of my tax money for public servants, but citizens are getting no service. Most of the public servants are stated to be involved in corruption despite big hike in their salaries.     
"None can get service from them without bribes."
Anyone who earns Tk 21,000 a month from July this year will come under the tax net.
"The government is setting highly ambitious tax collection target and it troubles the taxpayers. Even, the tax officials become harsh to taxpayers while meeting the collection target. This may be raised the harassment allegation," said former NBR Chairman Dr MA Mazid.
 "Action needs to be taken against taxmen for their 'oppressive' acts," he said adding the NBR officials must treat all taxpayers fairly to strike the right balance while challenging tax avoidance, evasion and other forms of deliberate non-compliance.
Dr MA Mazid observed that in the current tax system, low-income earners are paying a larger part of their income as tax than the high-income earners and rich people.  
For example, tax-free income threshold for personal income stays same at Tk 2.5 lakh for the fifth year in a row, while minimum net wealth exemption limit has been increased to Tk 3 crore from Tk 2.25 crore, leaving a number of rich people out of the wealth surcharge net.
Besides, the income tax slabs in the current fiscal year also remain unchanged at 10 per cent for income above Tk 4,00,000, 15 per cent for the next Tk 5,00,000, 20 per cent for the next Tk 6,00,000, 25 per cent for the next Tk 30,00,000, and 30 per cent for anything above Tk 47,50,000.
"The government should widen the limit of taxable income for an individual, as the cost of living has increased manifold due to rising prices of commodities, and inflation," said Dr MA Mazid.
"We hear a lot about "tax fairness," but what is taxed and the level of that taxation follow no logical or moral course. Rather, those decisions are driven by political clout and the perceived need for revenue," Dr Zahid Hussain, Lead Economist, World Bank's Dhaka office told The New Nation.
He also said that the low-earning group would go under further tax-pressure due to a number of fiscal measures introduced in the latest budget.
These are increase of gain tax on savings schemes from 5 percent to 10 per cent, hike of VAT on clothing outlets (both branded and non branded) from 5 percent to 7.5 percent, increase of supplementary duty from 5 percent to 10 percent on the services provided through mobile phone SIM / RIM card and additional 5 percent customs duty on milk powder.
"All these will entail higher costs to consumers particularly low and middle-income families and push up their living expenses," said Dr Zahid Hussain.
He also cited that the government seems to rely more on income tax to sustain incremental revenue target. And this will create more pressure on marginal taxpayers.
When asked, Dr Zahid Hussain said, the policies on indirect taxation (VAT) are archaic and the policies on direct taxation penalise the honest and reward the dishonest.
"Even, paying taxes is more cumbersome than evading taxes," he said.
The revenue target for the fiscal year 2019-20 has been set at Tk 377,810 crore, which is 17.92 percent more than that in the previous fiscal.
In FY 2018-19, the original revenue target was Tk 3,39,280 crore.
Of the revenue earnings in the current FY, the National Board of Revenue (NBR) will collect Tk 325,600 crore, which is around 16.28 percent higher than the revised collection target of Tk 280,000 crore in the fiscal year 2018-19.
The government will spend 20.5 percent of revenue budget on salaries and allowances of its employees.
"The government is persuading an arbitrary nature of tax system, which not only fails to generate significant revenue for the government, but also breeds extremely high levels of corruption and incidents of tax avoidance and evasion," Economist Dr Ahsan Mansur told The New Nation.
He said that the current tax system requires a complete overall to make it fair for taxpayers. A fair tax system can help the government to generate the optimal revenues. Digitalisation of the whole process is the need of the time.
"We are informed that the field level tax officials have been harassing the businessmen in the name of tax collection, which is not fair. Businesses want a harassment-free tax system to comply with their obligations," said former FBCCI President M Shafiul Islam Mohiuddin.    

Add Rate

News Archive

Inside The New Nation

Cricket »

Fizz well placed to be fourth fastest to 100 ODI wickets

Mustsfizur Rahman's inconsistency raised a concern whether he could claim his 100 wickets in this World Cup but the fast bowler's epic performance against India in the previous match quelled that tension.Having started the tournament with 17 wickets shy to reach the three-figure mark, Mustafizur Rahman so far took 15 ...

International »

N Korea says US 'hell-bent' on sanctions despite Trump-Kim meet

AFP, United Nations :North Korea has accused the US of being "hell-bent on hostile acts" just days after the countries' leaders agreed to resume denuclearization talks.US President Donald Trump and North Korean leader Kim Jong Un held an impromptu summit on North Korean soil on Sunday, where they smiled and ...

International »

Putin signs bill suspending participation in nuclear treaty

AP, Moscow  :President Vladimir Putin has signed a bill suspending Russia's participation in a pivotal nuclear arms treaty.Putin's decree, released on Wednesday, formalizes Russia's departure from the 1987 Intermediate-Range Nuclear Forces treaty with the United States following Washington's withdrawal from the pact.The U.S. gave notice of its intention to withdraw ...

Editorial »

Contamination and adulteration: Now it's DWASA's turn

A new joint study has found bacteria and other contaminations in water supplied by the Dhaka Water Supply and Sewerage Authority at several source points. The study was carried out by ICDDR,B, Bureau of Research, Testing  and Consultation of the Bangladesh University of Engineering and Technology and Dhaka University's Microbiology ...

Entertainment »

Jaya Ahsan represents Bangladesh in cricket World Cup

Enetrtainment Report :Jaya Ahsan recently visited England as a representative of the Bangladesh cricket team in the ongoing cricket World Cup. She has been seen in several matches, especially the ones played by Bangladesh. Though she had to return to Bangladesh for work commitments in between, she took a flight ...

City »

Tania Akhter, wife of missing Ataur Rahman Shahin speaking at a press conference in DRU auditorium on Wednesday demanding whereabouts of her husband.

Cricket »

I wanted to win the match and to be the hero: Saifuddin

India, as the second team after Australia, sealed the semi-final spot in the ICC Cricket World Cup 2019.It was not a last over thriller - but it was agonizing indeed for Bangladesh fans, once again they cast out from a big competition with a narrow defeat against India, this time ...

International »

EU, France, Germany and UK urge Iran to reverse uranium decision

AFP, Brussels :The diplomatic chiefs of the EU, France, Germany and Britain said Tuesday they were "extremely concerned" and urged Iran to reverse its decision to breach a limit on enriched uranium reserves under a 2015 nuclear deal."We urge Iran to reverse this step and to refrain from further measures ...

International »

Trudeau promises support for Ukraine in wake of Russian 'aggression'

AFP, Toronto :Canadian prime minister Justin Trudeau promised Tuesday to support Ukraine in the wake of Russian "aggression," after a meeting with Ukrainian president Volodymyr Zelensky in Toronto.The two leaders met while Zelensky was in Toronto on his first visit to North America to participate in a conference on Ukrainian ...

Business & Economy »

Tesla delivers record number of electric cars in quarter

Reuters, San Francisco :Tesla Inc set a record for quarterly vehicle deliveries in a triumphant response to months of questions about demand for its luxury electric cars, sending shares up 7% after hours on Tuesday.Tesla did not comment on profit - which is still elusive - but the robust deliveries ...

Campus Life »

2nd round of Int'l Leadership programme held

Campus Report :The second round of the International Leadership Program on Education (ILPE), dubbed as 'Intensive Leadership Training Round', specifically comprising of the students of Bangladesh Cadet Colleges was held at two different venues on Sunday. Thousands of cadets who are currently prosecuting their studies in the cadet colleges of ...

Entertainment »

Nadia as judge of two contests

Sheikh Arif Bulbon :Popular TV actress, host and dance artiste Nadia Ahmed has already garnered admiration from the viewers by virtue for her performances in various fields. She will be seen as a judge in the upcoming reality show of RTV titled Campus Star. With an aim to discover talented ...

Entertainment »

Khandaani Shafakhana will make people think: Sonakshi Sinha

Actress Sonakshi Sinha says her forthcoming project Khandaani Shafakhana will make people think why sex still remains a taboo in the society.  Directed by Shilpi Dasgupta, Khandaani Shafakhana depicts the journey of a young girl who inherits her dead uncle’s sex clinic in Punjab. “On hearing the film’s one-line pitch ...

Cricket »

Rohit Sharma (100) has brought up his fourth World Cup 2019 century and 26th overall in ODIs. He reached the mark with a single on the last delivery of the 29th over by Shakib Al Hasan.

Entertainment »

'Parineeta' trailer to release on July 4

Raj Chakraborty's upcoming romantic drama 'Parineeta' starring his wife Subhashree Ganguly and Ritwick Chakraborty in the lead has already hooked the audience with the release of two of its emotionally drenched posters. And now here's a piece of good news for all those who are eagerly waiting for the film. ...

Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Write a comment to this news