Excessive tax rules hinder trade growth

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FE Report
Excessive tax related regulations in doing business are major hindrances towards the growth of trade and commerce in the country, speakers at a meeting said.
Complexities in getting refund of paid tax, heavy tax burden on local manufacturing sector, too many rules and orders, frequent changes in tariff measures have been identified as major roadblocks to creating a tax-payers friendly environment.
The complications in tax laws were discussed in the meeting on 'excessive regulations in doing business in Bangladesh: A study on tax administration', arranged by International Business Forum of Bangladesh (IBFB) Wednesday in the city.
IBFB organised the meeting in cooperation with USAID-PROGOTI (promoting governance, accountability, transparency and integrity).
Former secretary and chairman of the Securities and Exchange Commission (SEC) Faruk Ahmad Siddiqui, renowned economists, former members of the National Board of Revenue (NBR) attended the meeting.
IBFB president and former mayor Chittagong city corporation Mahmudul Islam Chowdhury chaired the session.
IBFB, a non-profit organisation striving for improving the business climate in Bangladesh, will unveil a study report on tax administration in December with the recommendations coming from the stakeholders in the meeting.
Speaking at the meeting, Faruk Ahmad Siddiqui underscored the need for a computerised data-base to bring more taxpayers under tax net.
"There are 2.3 million taxpayers' identification number (TIN) holders, but only 0.75 million pay income tax. The NBR can not chase the rest of the taxpayers due to poor data-base," he said.
The government will have to give priority and allocate more fund to improve tax administration, he said.
"Transparency and accountability are needed to thwart corruption in the tax administration," he said.
Educating people about tax is also important and make them aware of the government move for simplifying tax payment, he said referring to the universal self-assessment method that slashed discretionary power of taxmen.
Professor Swapan Kumar Bala of Dhaka University presented a concept paper on 'Complexities in the income tax laws: A quest for a simpler taxation system.'
In his concept paper, Bala said taxpayers will able to handle their own tax affairs without any fear, cost and favour from others if the government can eliminate complexities.
Ms. Taleya Rehman, chairperson of Democracywatch said: "The government should inform taxpayers about how their paid tax is being used for development of the country for motivating people to pay taxes."