The National Board of Revenue (NBR) is reportedly mulling over introduction of tax education in secondary and higher secondary text books.
There was a similar move in the past also. But for reasons of bureaucratic complexities, it was not successful.
The situation is altogether different now. The move is likely to get necessary support from the men in authority this time and secondary and higher secondary level students are expected to get to know soon about taxation and the reasons for people paying tax to the government.
There is no denying that the campaign to motivate people to pay tax regularly and in right amount has been strengthened in recent years. Tax fairs are being organised every year in major cities and towns where the eligible taxpayers are encouraged to submit their annual tax returns without hassles and get other relevant information.
However, despite all these promotional campaigns, the number of taxpayers has not increased up to the desired level. Many potential taxpayers have not submitted tax returns even after getting their tax identification numbers (TINs). This particular development has stirred up frustration among top tax officials.
There are plenty of reasons for the people in this part of the world for being uninterested in payment of tax. One has to find answers to a couple of basic questions; (1) why should people here pay tax to the government and (2) why should not they pay tax?
The answer to the first question is an easy one. All the relevant books, academic or otherwise, do explicitly explain why the people of a particular territorial limit pay taxes to the state exchequer. The government needs money to support its administrative operations, offer different services to the people and finance development activities. Taxation is one of the ways of mobilising funds to support all these activities.
There are laws that make the payment of direct and indirect taxes to the government mandatory on the part of individuals and business firms. There are also penal provisions in the relevant laws for violation.
So, it is both moral and legal obligation of the citizens to pay tax to the government. Otherwise, it would not be possible for the government to run its administrative and service operations and carry forward development activities.
In developed countries where tax rates are relatively high, citizens are found to be very regular in tax payment. Tax evasion in these countries is considered a serious crime. But the situation in Bangladesh and many other poor developing countries is altogether different. A large section of eligible taxpayers in these countries tend to be tax-evasive.
The answer to the second question cannot be found in a book or a journal. The reasons that might motivate people against the payment of tax are perceived ones.
The first and foremost reason that usually discourages people to pay tax is the individuals' urge not to spend money on anything without any visible or tangible gain/s.
A taxpayer in this country hardly takes note of the fact that the tax-money is being spent on services and development activities that are meant to help or benefit people in general.
However, the hassles that the taxpayers usually face while visiting the government offices, the pitiable conditions of the roads and highways and the poor quality of services delivered by the state health and other facilities are enough to discourage them from paying taxes.
Another big issue is corruption. The vast majority of existing and potential taxpayers tend to believe that the entire taxation system is graft-ridden. Many eligible taxpayers stay away from paying tax out of the fear that taxmen would put them in trouble deliberately to squeeze extra money. Such fear is not entirely unfounded. But the situation in the case of anyone wanting to pay the right amount of tax is hazard-free. The problem arises when a taxpayer wants to conceal income with the objective of avoiding tax payment. However, in some cases, unscrupulous tax officials and tax lawyers often suggest ways to avoid payment of right amount of taxes.
Understandably, the tax education to be imparted at the secondary and higher secondary classes would try to give a basic understanding of tax; the reasons behind its collection and how it is spent. However, the national education board honchos do need to make the tax education curriculum for secondary and higher secondary classes interesting and motivational. The basic aim of the proposed education on tax should be to inculcate in students a positive impression about the need for becoming tax-compliant citizens in the future.
But while making the future generation conscious about tax payment, the authorities concerned would have to take appropriate measures to make the tax administration efficient and graft-free.
Otherwise, the very objective behind imparting tax education to young students would be defeated.
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