Govt to widen tax net to cover rural areas

The government will cast wide tax net to cover rural areas for enhancing revenues as Finance Minister AMA Muhith said people in the countryside are now capable of paying taxes.
"More tax offices will be set up in the upazila level to bring rural people under the tax net," he said, adding that capacity of rural people has increased over the years as "rural economy has become stronger".
His announcement came in response to parliamentary standing committees' recommendations at a pre-budget meeting at the National Economic Council in the city Sunday.
Earlier, the parliamentary panels' members said income-tax base should be broadened through expanding effective TIN holders up to rural areas.
They argued that a large section of the rural well-off people remained outside tax network and they should be hooked onto the tax net.
Finance Minister Mr Muhith presided over the meeting. Planning Minister AHM Mustafa Kamal and State Minister for Finance and Planning MA Mannan, among others, spoke on various aspects of the budget in the making for the next fiscal year (FY).
The parliamentary bodies' chiefs said the government should adopt stern measures to prevent tax evasion.
Speaking at the function parliamentary standing committee on ministry of finance chairman, Dr Abdur Razzak noted many high-income professionals, particularly doctors, engineers, lawyers and house owners, conceal their earnings.
"Doctors, engineers, lawyers and similar other groups hide their actual incomes," Dr Razzak said.
He suggested conducting surveys to bring them under tax net and find a legal solution to prevent tax evasion by them.
Dr Razzak also suggested that the government should fix square metre-based house rent for posh areas in the capital, including Gulshan, Dhanmondi and Uttara.
Chairman of the parliamentary standing committee on the ministry of planning Abul Kalam Azad said wealthy people managed to evade taxes as the tax officials were not working properly.
"The government will have to give attention to this issue and so the tax net can be increased significantly," he said.
"It's a shame for the country that only 1.1 million people pay income tax out of 160 some million," he told the meet.
The lawmaker also sought guidelines to encourage remittance earners to invest their hard-earned money in productive sectors, including agro-based industries in rural areas.
Golam Dastagir Gazi, member of the parliamentary standing committee on the ministry of finance, said the government should ensure providing reward in terms of providing services from tax payments as taxpayers want so.
He said under-invoicing in import should be prevented to save domestic industry and stop money laundering.
Parliamentarian Rustam Ali Farazi said tax collection would increase if the government could ensure proper use of tax money.
Former health minister AFM Ruhal Haque demanded increased allocation for the health sector.
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