600pc tax hike for trade licence!

I run a small business and I had a frustrating experience recently while trying to renew my trade licence. When I went to the office of Dhaka South City Corporation, the help desk at the Nagar Bhaban advised me to pay Tk 3,000 as tax at source. The amount of such tax was Tk 500 for the past several years. As I inquired about the matter, the officers said the decision to raise tax was widely circulated much earlier and traders too were paying tax at this rate for renewing trade licences from this year. Although many of us missed it, I fully understand that there might be increase in tax to make up for incremental increase in the government's expenses or to adjust revenue earning with inflation. But how could it be a 600 per cent rise in a single year?

This happens at a time when the banking sector is being exploited by a handful of big loan defaulters, according to a Bangladesh Economic Association seminar on September 7. Such moneyed men are allegedly siphoning off money while corruption by a section of politicians and bureaucrats is increasing black money in society. Those of us who are trying to do business honestly, are suffering. As businessmen, we are paying taxes and VAT (value added tax) and the common people are also paying taxes and utility bills properly. Since we cannot make windfall profit, any extra charge turns into a big burden on us. We call on the government to withdraw irrational taxes like the one applicable for trade licence renewal. Such whimsical taxing culture hinders the growth of small businesses.

Mohammad Hefzul Bari

Elephant Road, Dhaka