Top taxpayers call for widening tax net
Honest and diligent taxpayers have urged the government to bring more people under the tax net as they think there were many more still taxable.
But that will not be an easy task if the fear of harassment by tax collectors is not allayed, they said.
Their comments came yesterday on the sidelines of a ceremony honouring 141 highest taxpaying individuals and companies for their sincere contribution towards the development of the country.
The National Board of Revenue (NBR) organised the programme at Pan Pacific Sonargaon Dhaka in a bid to encourage compliance so that the state can accomplish financing its development goals through domestic resources.
Guests at the programme. Photo: Star
Bangladesh, with its economy growing by more than 7 percent a year, lags behind other developing countries in generating domestic revenue owing to tax evasion.
The Centre for Policy Dialogue recently said only 32 percent of people with taxable income pay tax.
The NBR data shows that the number of registered taxpayers and return submissions have been rising in the last couple of years. Yet, just over one percent of the population submit annual income tax returns now, which had hovered below one percent for several years.
Bangladesh's tax-GDP ratio, a measure of the state's capacity to finance its expenditure, stands at 9 percent whereas the developing country average is 15 percent.
“Tax net should be increased. It appears that the number of people with taxable income is higher than the number of people paying tax,” said KM Tanjib-ul Alam, who was honoured in a category for lawyers.
He said he does not pay tax for earning fame.
“I pay tax based on what I earn. There are many lawyers who earn more but pay less tax than me,” the young lawyer said questioning the culture of tax evasion in Bangladesh.
“It appears that there is a tendency among the super rich, why are they not on the top taxpayers' list?” said Alam.
NBR Chairman Md Mosharraf Hossain Bhuiyan presents a memento to Finance Minister AMA Muhith for his “extraordinary contribution to tax collection” at a ceremony at Pan Pacific Sonargaon yesterday to recognise 141 highest taxpaying individuals and organisations. Photo: Star
The income tax department should win the confidence of people, he said, adding that there were allegations of many taxmen compelling taxpayers to engage in corruption.
Architect Iqbal Habib, who once again became a top taxpayer in architect category, said professionals were not inclined towards paying taxes as many take it as a wastage of money in view that a lot of public money was misused.
“There is also a role of income tax lawyers. Many tax consultants misguide professionals into refraining from disclosing their actual income. As a result, professionals are not coming forward,” he said.
Standard Chartered Bank Bangladesh CEO Naser Ezaz Bijoy receives an award on behalf of the bank. Photo: Star
“Many of my friends take the issue of tax card (the NBR's recognition of tax compliance) lightly when I share it on social media. It appears that many think I am a fool,” he said.
“But tax payment and proper compliance is not a choice. It is obviously something that one must do. In other countries, non-payment of tax is a crime. Several Padma bridges could be built if all paid taxes properly, he said.
Noted actor Abul Hayat, who was honoured with a tax card in artist category, said compliance was gaining ground among the populace, as reflected in the number of income tax returns being submitted.
Yet the level of awareness about the need to pay tax remains low. It seems that the revenue board is yet to motivate people by informing them about the benefits of tax payment. It is also necessary to reduce fear among people about taxmen, he said.
Md Moktar Hossain, who once again got a tax card as top taxpayer in accountant category, said multinational companies usually do not evade tax.
Problems may remain regarding local companies, he said, adding that one of the reasons behind this absence was tax audits.
“Tax audit should be introduced as part of efforts to increase the scope of the tax net. The existing practice of test audits should be replaced by thorough tax audits so that accountants can conduct examinations in detail. This can initially be introduced on a pilot basis,” he said.
Khandker Badrul Hassan, who was honoured as a top taxpayer in senior citizen category, said a large number of taxable people do not pay it.
“NBR's capacity should be strengthened. Its manpower is low compared to the expansion of the economy. Tax offices should be established up to the upazila level,” he said.
Top taxpayers in various categories
Senior Citizen
Golam Dastagir Gazi
Tapan Chowdhury
Engr Khandker Badrul Hassan
Gazettted Freedom Fighter
Lt Gen (retd) Abu Saleh Mohammad Nasim
Md Nasir Uddin Mridha
Md Idris Ali Mia
Challenged Persons
Sukarna Ghosh
Dr Kazi Akthar Hossain
Dr Md Mamunur Rashid
Women
Rubaiyat Farzana Hossain
Ratna Patra
Parvin Hasan
Young Taxpayer
(below 40 years)
Nafis Sikder
Md Amzad Khan
Gazi Golam Mortoza
Businessman
Md Kaus Miah
Md Nuruzzaman Khan
Kamrul Ashraf Khan
Salaried persons
Laila Hossain
Mohammad Yusuf
Hosne Ara Hussain
Doctor
Prof Dr AKM Fazlul Haque
Prof Dr Pran Gopal Datta
Dr Jahangir Kabir
Journalist
MA Malek
Mahfuz Anam
Shykh Seraj
Matiur Rahman
Naem Nizam
Lawyer
Fazle Nur Tapos
Ahsanul Karim
Mahbubey Alam
Engineer
Mohammad Anwar Hossain
Md Hafizur Rahman
Mohamad Hamidul Haque
Architect
Foyez Ullah
Md Hasan Shams Uddin
Md Iqbal Habib
Accountant
Md Moktar Hossain
ABM Luthful Hadi
Bimolendu Chakrabarty
New Taxpayer
Mia Monika Rafiqulovna
Md Tafizul Islam Pial
Rana Malik
Sportsmen
Shakib Al Hasan
Tamim Iqbal
Mashrafe Bin Mortaza
Artist
Mahfuz Ahmed
MA Jalil Ananta
SA Abul Hayat
Singer
Tahsan Rahman Khan
Runa Laila
SD Rubel
Others
Sadar Uddin Khan
Abu Mohammad Ziauddin Khan
Md Nazrul Islam Mazumder
Banking
Islami Bank Bangladesh Ltd
Standard Chartered Bank
HSBC
Non-bank Financial Institution
IDLC Finance Ltd
ICB
Bangladesh Infrastructure Finance Fund Ltd
Telecommunication
Grameenphone Ltd
Engineering
BSRM Steels Ltd
PHP Cold Rolling Mills Ltd
PHP Nof Continuous Galvanizing Mills Ltd
Food and Allied
Nestle Bangladesh Ltd
Olympic Industries Ltd
Transcom Beverage Ltd
Energy
Titas Gas Transmission & Distribution
Sylhet Gas Field
Chevron Bangladesh Blocks Thirteen & Fourteen Ltd
Jute Industry
Janata Jute Mills Ltd
Super Jute Mills Ltd
Ayan Jute Mills Ltd
Spinning &
Textile
Coats Bangladesh Ltd
Apex Textile Printing Mills Ltd
Badsha Textile Ltd
Pharmaceuticals &
Chemicals
Unilever Bangladesh Ltd
Square Pharmaceuticals Ltd
Renata Ltd
Print & Electronic Media
East west Media Group Ltd
Transcraft Ltd
Media World Ltd
Real Estate
Space Zero Ltd
Bay Developments Ltd
The Structural Engineers Ltd
Garments
Rifat Garments Ltd
GMS Composite Knitting Industries Ltd
That’s It Sportwear Ltd
Leather
Bata Shoe Company (Bangladesh) Ltd
Apex Footwear Ltd
Lalmai Footwear Ltd
Others
British American Tobacco Bangladesh Ltd
American Life Insurance Company Ltd
Lafargeholcim Bangladesh Ltd
Nitol Motors
Firm
Walton Micro-tech Corporation
M/A SN Corporation
Walton Plaza
Local Authority
Civil Aviation Authority
Individual Collective
Mongla Cement Factory
Sena Kalyan Electric Industries
Others
H Akbar Ali & Co Ltd
Expo Freight Ltd
Bangladesh Bank Karmachari Shamabay Rindan Samity Ltd
Gramsico Ltd
