Cash incentive for revenue board employees unlikely to be approved
Shakhawat Hossain | Wednesday, 9 July 2008
A proposal by the revenue board on introduction of cash incentive to its officials and employees for higher revenue generation is unlikely to be approved as the finance adviser has asked for a 'further review' of the matter, official sources said
The National Board of Revenue (NBR) sought approval on June 30, but finance and planning adviser Mirza Azizul Islam directed the finance secretary to discuss the issue.
The finance ministry has taken up the issue as per the directive of the adviser. "Now the chance for approval will become slim," said a senior ministry official.
The official said the finance ministry in a similar move in the past turned down a central bank proposal on a separate pay scale.
The NBR, responsible for mobilising 80 per cent of annual public income, has sought 10 per cent of the revenue generated in excess of target as the cash incentives for distribution among the entitled officials and employees.
Currently, the NBR officials are being offered cash incentive for detecting revenue evasion. The new proposal will be in addition to the existing 'merit based' award scheme.
The proposed incentive will, however, not be higher than the amount of 24 months' basic salary of an individual. It will also be applicable for an individual once in a year.
The revenue board proposal said tax collection has become an 'unpleasant job' due to unfavorable tax culture, domination of informal economy, weak tax policy and other factors like administrative, social and economic disadvantages.
It is a difficult task for the taxmen to keep pace with higher annual revenue collection target.
Citing examples of Pakistan and Singapore, the proposal said the encouragement through cash incentive will strengthen the ongoing reform programme in the board and help the country achieve higher revenue generation.
The NBR officials have long been facing criticism for corruption and harassment of taxpayers, and failure in achieving revenue target.
The country's tax-GDP ratio, less than a double-digit figure, is lowest among the South Asian countries.
The NBR's revenue collection might have overshot the target by at least Tk 20.0 billion in just concluded fiscal, thanks to anti-corruption drive by the present caretaker government.
Its target has been fixed at 9.3 per cent of the GDP in the new fiscal. It could never achieve such higher target in the past.
The National Board of Revenue (NBR) sought approval on June 30, but finance and planning adviser Mirza Azizul Islam directed the finance secretary to discuss the issue.
The finance ministry has taken up the issue as per the directive of the adviser. "Now the chance for approval will become slim," said a senior ministry official.
The official said the finance ministry in a similar move in the past turned down a central bank proposal on a separate pay scale.
The NBR, responsible for mobilising 80 per cent of annual public income, has sought 10 per cent of the revenue generated in excess of target as the cash incentives for distribution among the entitled officials and employees.
Currently, the NBR officials are being offered cash incentive for detecting revenue evasion. The new proposal will be in addition to the existing 'merit based' award scheme.
The proposed incentive will, however, not be higher than the amount of 24 months' basic salary of an individual. It will also be applicable for an individual once in a year.
The revenue board proposal said tax collection has become an 'unpleasant job' due to unfavorable tax culture, domination of informal economy, weak tax policy and other factors like administrative, social and economic disadvantages.
It is a difficult task for the taxmen to keep pace with higher annual revenue collection target.
Citing examples of Pakistan and Singapore, the proposal said the encouragement through cash incentive will strengthen the ongoing reform programme in the board and help the country achieve higher revenue generation.
The NBR officials have long been facing criticism for corruption and harassment of taxpayers, and failure in achieving revenue target.
The country's tax-GDP ratio, less than a double-digit figure, is lowest among the South Asian countries.
The NBR's revenue collection might have overshot the target by at least Tk 20.0 billion in just concluded fiscal, thanks to anti-corruption drive by the present caretaker government.
Its target has been fixed at 9.3 per cent of the GDP in the new fiscal. It could never achieve such higher target in the past.