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21st-Aug-2016

Don`t only talk of tax evasion, talk of corruption, talk of financial disruption

By Editorial Desk

No matter how disorderly and disadvantageous is the financial situation, the government has no hesitation to issue tough calls. All law-abiding persons want to pay tax and live carefree. Tax evasions will be found mostly among the powerful ones with political connections. It calls for intensifying the efforts of NBR against tax evasion by enhancing operational mode and staff efficiency at large. Most of all the officials must be realistic and not oppressive. We do not say the tax men are inefficient but tax laws are so cumbersome that it is impossible for honest people to pay tax honestly. Besides, paying tax honestly is no guarantee that the law will not be abused to make his life difficult. Honesty in paying tax is no guarantee of peace, corruption is.    As per available data there has, however, been an increase in size of tax - income tax, VAT and rates - inthe recent years in terms of taka figure. But it has not increased in GDP-Tax ratio proportionately. It is just 15.3% while ideally it should be 24 pc plus. That is the real earnings have remained far short of their actual potential. The people pay more in corruption than in taxes. This allegation must be examined, but by whom? The whole way of governing is helpful for the corrupt ones. Without taking into consideration of the fact that corruption is going on  unhindered, and without taking into consideration the financial mess created as a result of bad governance, it is futile and unjust to blame persons for tax evasion. When the government should not accept the blame for not stopping corruption, financial mismanagement, and its failure to govern justly and fairly nothing fair can be expected. Terrorism does not grow for nothing and it is wrong to compare our terrorism with terrorism seen in the Western countries. There terrorism is motivated by crimes some of these countries committed against the Muslims like in Iraq, Afghanistan and Syria. ISIS was born in these countries. We have to examine what is happening within our country. So, unreasonable pressure for tax will be oppressive and not helpful for collecting tax. The government has to accept the responsibility for thousands of crores of taka lost from the banks. It is also questionable how big amounts of money are being spent on big projects, not productive but helpful for corruption.The good management of the country's economy is not possible where corruption in high places goes ignored, where terrorism grows and people are unsafe and insecure and where police power is supreme and the judiciary is under obvious pressure. There is also no accountability about the waste of public funds. It should be remembered the people are asked to pay tax from their hard earned money. The people with black money do not have to pay tax.