BD ranks 1st among S Asian nations in taxation services

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Doulot Akter Mala Bangladesh ranks first among the South-Asian countries in taxation services and 12th among the 19 Asia-Pacific countries, according to a latest study report. A report on "Good Governance for International Business Asia Pacific 2011" revealed the findings. Singapore-based corporate advisory firm, Vriens & Partners PTE LTD, unveiled the study. "Taxation assesses the tax environment in terms of the administrative transparency and efficiency in tax collection, along with local taxation rates -- particularly the corporate tax rate," the report said. The firm has collected information from World Bank, International Finance Corporation (IFC) and business executives of Asia-Pacific countries for its study. The report has followed six pillars to assess 19 Asia-pacific countries. The indicators are -- rule of law, openness to international trade & business, political stability, taxation and corruption, The 19 countries are: Bangladesh, Myanmar Singapore, Hong Kong, New Zealand, Australia, Taiwan, Japan, South Korea, Malaysia, China, Thailand, Indonesia, Vietnam, India, Sri Lanka, the Philippines, Cambodia and Laos. Among the 19 countries, Bangladesh ranked eighth on rule of law, 17th on openness to international trade & business, 18th on political stability and corruption and 16th on fiscal & monetary administration. Bangladesh scored 37.3 and its overall rank is 18th while Singapore ranked first scoring 90.2. Myanmar is in the last position with 30.1 score. Among the South-Asian countries, Bangladesh ranked first on taxation pillar while India second and Sri Lanka third. The report has appreciated the taxation part of Bangladesh in its study. "Bangladesh scores remarkably well on the taxation pillar as the current government has looked to reform the country's outdated tax code," the report said. However, the provision of a more competitive tax regime is by far the simplest and easiest change that governments can effect in an attempt to attract foreign investment, it said. The report said corruption is still pervasive in Bangladesh, and although officials have taken steps to address the problem, it is still too early to determine their success. Though Bangladesh still runs an alarming trade deficit, an increasing amount of goods utilise the country's ports en route to market, often originating from India, Nepal or Bhutan. ". in energy production Russian and American companies are playing leading roles in developing the sector," the report said. These efforts should help in alleviating a chronic electricity supply shortage, it said. As alluded to above, the country is looking to expand its market economy, especially in the energy and infrastructure sectors, the report said. ". although certain key industries, such as the financial and agricultural sectors, remain largely under public control it does appear that in future the government might allow further privatisation in an effort to stimulate greater growth," it said. Businesses in the country can expect an increasing amount of government support, and strong laws to protect investors, the report said. Bangladesh's often volatile political situation appears to have stabilised, and a change of government is unlikely in the coming elections, it said. Parliament has also recently overturned a 15-year old law requiring that all elections be overseen by a non-partisan caretaker government, leading to an outcry from the opposition but elections are expected to be peaceful, the report said. The report has highlighted 'lowest wages' and large 'work force' as greatest potential for rapid economic gains over the next few years.