Corporate tax for insurance companies
Thursday, 23 July 2009
Ethical operation's of insurance companies would put them on a better footing. The economy can gain from the investment of resources mopped up by the insurance companies. The government can earn revenue from the sector. And streamlined operations will create conditions for further sustainable expansion of the insurance business.
There is a large scope for the development of the insurance industry. For this to happen, the players in the industry should acquire a clean bill of health for themselves by abandoning secretive and unethical management practices. They should go for proper disclosures and follow a policy to reinvest their profits instead of the evasive practice of siphoning off profits for irregular activities.
The insurance companies say that the existing rate of corporate tax on them is much higher compared to the neighbouring countries. They are asking for scaling down the tax rates. But, they also need to understand that the high incidence of tax on them is caused by their non transparent operations and tax evasion. Once the companies reform and streamline their business with transparency and reinvest their profits, their plea for reducing the tax rate further would stand on a stronger ground. They need to create the ground for the government to respond positively to their suggestion.
Shakeel Quasem
Eskaton, Dhaka.
There is a large scope for the development of the insurance industry. For this to happen, the players in the industry should acquire a clean bill of health for themselves by abandoning secretive and unethical management practices. They should go for proper disclosures and follow a policy to reinvest their profits instead of the evasive practice of siphoning off profits for irregular activities.
The insurance companies say that the existing rate of corporate tax on them is much higher compared to the neighbouring countries. They are asking for scaling down the tax rates. But, they also need to understand that the high incidence of tax on them is caused by their non transparent operations and tax evasion. Once the companies reform and streamline their business with transparency and reinvest their profits, their plea for reducing the tax rate further would stand on a stronger ground. They need to create the ground for the government to respond positively to their suggestion.
Shakeel Quasem
Eskaton, Dhaka.