The tax of divinity

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Mahmudur Rahman
Finance Ministers and the officials of the National Board of Revenue (NBR) often decry the fact that the tax gross domestic product (GDP) ratio in Bangladesh is one of the lowest in the world. Authorities urge people to pay their taxes and the people complain about the complexities of tax return submission, coupled with the inevitable graft they have to endure. And in the worldly way of doing things every year, new processes are devised to "simplify" procedure. What is usually overlooked is that the people who are engaged in simplifying the procedures retain unique loopholes to maintain their ability to absorb graft. More often than not it is the small graft that irritates the tax payer. It is an irritation they have come to accept just as society has come to accept a junior tax man owning a massive four storied house in Dhaka.
In one of these discourses this scribe had pointed out that the general public has several unofficial taxes that they shuck out in their every-day life. There is the extra Tk. 10 paid to CNGs, rickshaw pullers or taxis during rush hour. There is the extra fare paid to bus companies at times of festivals, not to mention to blackers. There are the tolls that have to be paid for using bridges and ferries. There are the "hidden" bank charges that are cleverly obscured in the fine print and there is the obnoxious value added tax (VAT) that is charged on every purchase whether in shops or when frequenting a decent restaurant. And of course VAT on utility charges, even for the precious little that is enjoyed these days. That part of life is never considered by anyone during salary adjustments and such.
The concept of religion as part of a life is one that is usually misunderstood, ignored or followed. But when it comes to Islam, no matter whether the five obligatory prayers are followed or not, it is usual for Muslims to pay their Zakat. The concept is a simple one. Leaving out expenses and such Muslims who can afford to must pay Tk. 25 for every thousand taka they have in way of liquid cash and gold. And they have to pay this out to truly deserving persons.
According to a recent survey 52% of the population or 78 million people live above the poverty level. Discounting the 50% of that which is those under the age of 18, we come to the figure of 39 million. If the Muslim population is roughly 87%, that brings the number of those eligible to pay Zakat to about 34 million. Now if on an average Tk. 5000 is paid in Zakat by an individual, there is a sum of Tk. 169 billion that should be going into circulation into the economy by way of Zakat.
This is an additional "tax" imposed on us by religion and one that is probably more scrupulously paid than our own income tax. Why? Because it's a matter of conscience and not compulsion. There's no graft, certainly no cumbersome procedure and it leaves everyone with a certain peace of mind.
Could we consider such divinity tax as an allowable expenditure? Or maybe a pooling of Zakat to an organisation headed by individuals who can be trusted to implement important projects as permissible under Islam? It's do-able, especially under the concept of public-private partnership. Anjuman Mufidul Islam has proved if there is a will, there is a way. (The writer is a former head of corporate and regulatory affairs of British American Tobacco Bangladesh and former CEO of Bangladesh Cricket Board. He can be reached at e-mail: mahmudrahman@gmail.com)