Most lawmakers pay taxesfor the first time in history

Doulot Akter Mala Two-thirds of the country's 345 lawmakers submitted their tax return this year after they were brought under the tax net for the first time in the country's history, officials said Sunday. Led by the Leader of the House and Prime Minister Sheikh Hasina, majority of the members of the parliament paid taxes complying with a new revenue law that abolished individual tax exemption for dignitaries. The prime minister paid her income tax on basic salaries ahead of the tax filing deadline, a senior official of the National Board of Revenue (NBR) said, adding: "She set an example for others to follow". "Her tax filing has ended all confusion on the issue. MPs and other dignitaries responded overwhelmingly to the new tax move," he said. Judges of the Supreme Court and the lower courts, however, haven't paid taxes in the current fiscal year as a writ petition in the High Court has challenged the decision. The High Court will hold hearing on the petition very soon and the tax department is "well prepared" to explain its position, the official said. Senior revenue officials expressed the hope that all the dignitaries would submit return, as the tax return deadline has been extended until October 16 to facilitate the job. "Some of the dignitaries have sought time extension for submitting tax return. But we are hopeful that all of them will pay their tax on basic salaries before the deadline," said the official. Income tax administration member Quader Sarker said "The NBR has issued demand notice to the MPs who have submitted tax returns in different zones." He said MPs, ministers and other dignitaries are under different tax zones and taxmen will get a complete picture after expiry of the deadline. Dignitaries enjoyed tax exemption facility for decades under the revenue laws, some of which are still in place. The official said tax payment by lawmakers will encourage people to pay taxes and bring about justice and equity in the country. Bangladesh is one of least tax compliant nations in the world with the country's tax-GDP ratio still hovering around 10 per cent. According to the latest NBR figures, nearly one million people pay income tax out of the total population of 150 million. Chamber bodies and experts often criticise the tax exemption facilities extended to the dignitaries, which they say discourage other people to pay tax.