On expansion of tax net

Much initiative has been taken to increase tax collection from the potential sectors. In a unique move, the tax authority has moved to scrutinise income tax files of some 150 top physicians of the country following alleged mismatch between their declared and actual incomes. Media reports said the National Board of Revenue (NBR) has prepared a list of these physicians to audit their tax files on the basis of available information. Renowned doctors who are involved with private practice have fabulous amounts of income. It is alleged that many top physicians hide information on commissions they receive from diagnostic centres. Some also conceal the number of actual patients who get treatment in their chambers.
Taxmen would also find out whether all registered physicians, having taxable income, have tax files or not. Media reports quoting NBR officials said of the 53,063 registered doctors across the country, around 10,000 physicians have tax files. The official, however, acknowledged that physicians are one of the highest taxpayers among the professionals. Tax payment by physicians increased sharply in the last five years with the expansion of private medical services across the country.     
     The country's population now is estimated at over 163 million. Surprisingly, there are only 1.7 million valid TIN holders in the country. Among them, only 1.1 million people pay income tax.
No doubt doctors constitute a big number among the tax evaders. But alongside them teachers, once known as poor, honest and innocent fellows, are now big earners. Teachers of the renowned public universities have numerous sources of earnings beyond their salaries. They offer part-time services to private universities, run evening courses in their own universities, and do consultancies for different organisations. All these bring them huge amounts. Do they mention the extra incomes in their tax files? This should not remain a dark zone for the tax officials. There are allegations that BUET teachers are more regular in private organisations than teaching their own pupils.
How incomes of the lawyers are assessed or registered by the taxmen is not known. Many lawyers have unlimited income. Do the taxmen not know that there are lawyers who charge half a million taka or even more for a single appearance in the court? What their tax files say is not known; income tax men should know.
Top-ranking bureaucrats earn more legal money after retirement than what they earned legally while in service. They are hired for lobbying by many private and multinational organisations and business houses. How many of them do mention about such employment and earnings thereby in their tax files?
In a post-budget discussion in the city recently, speakers urged the government to increase direct tax and expand the tax net so that every eligible person pays tax. Revealing that some 20 million taxable persons still evade taxes, Professor Ali Ashraf, Chairman of Parliamentary Standing Committee on the Ministry of Commerce wondered why the taxmen are not going to the people's doorsteps rather than holding discussions in the air- conditioned rooms.  Imagine, with the existing 1.1 million tax payers, if another 20 million are brought under the tax net, how large the volume of earnings of the government will be.  Prof Ashraf further said the government did not levy tax on productive sectors as much as they clamp tax on the inherited wealth.
Certainly the number of tax payers could be manifold. It is not expected that unless compelled, people will wilfully pay tax. What is needed is to bring them under tax net. True, most of the affluent people live in urban areas, particularly in big cities. That prompts the NBR to put their maximum attention to the urban areas. But there is no denying the fact that the rural economy is flourishing too.
Each of the upazilas and thousands of growth centres across the country are now vibrating with economic activities. Showrooms of electronic appliances, modern furniture and luxury products have now found their destinations in these areas. These are testimonies that people with good earnings are also available in those areas. The NBR will find prospective tax payers there. Side by side with expansion of tax net across the country, income tax offices should be opened at upazila level.
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