Taxpayers must have assurance
Monday, 29 October 2007
Ferdous Alam
Government leaders time and again emphasise in their statements that many with the ability to pay are not paying taxes or paying less than they should. But this is only one side of the picture. The other side shows shocking lapses, corruption and irregularities in the government which it needs to look into before identifying new taxation areas or raising the existing rates.
The taxpayers must have assurance that the extra money they will be paying will really would be spent on citizens' benefits in areas like municipal services, road maintenance, utility services that supply power and water, etc in which the private sector does not like to invest. When the people see these goals remain unrealised then taxation indeed becomes a one sided game with the government appearing more like a bully extorting money from them while they find no valid ground to whet this appetite .
The government should not only ask for more taxes from people but also try a lot harder than it is to really impress the taxpayers that what they pay to the government as taxes are being properly utilised in rendering services up to the level aspired by the citizens. There is every reason to think that the people will gladly pay their taxes in full and even decide happily to pay additional amounts or make sacrifices if they are convinced that their tax moneys are being well spent. In that event, both the government's tax collection targets as well as its aim to progressively increase the taxation base are likely to be smoothly achieved.
As it is, taxpayers every day see proofs of misuse of their tax resources. They regularly see their tax money squandered in breaking down or building, again and again, road dividers and footpaths to fill the pockets of the corrupt government employees and their chosen contractors. They find the supply of electricity and water and telephone and other services far from satisfactory and learn that their tax moneys are used to make up for the staggering losses in running the organisations providing the services. Experiences like these undoubtedly demotivate the taxpayers to pay additional or new taxes.
Besides, one very important side to taxation is to reduce the tax burden on businesses, in possible areas, to create incentives to invest more. The objective of expanding the base will remain unfulfilled if businesses fail to grow due to lack of fiscal incentives. The government must consider these factors with due seriousness in adopting and executing its fiscal policies.
Government leaders time and again emphasise in their statements that many with the ability to pay are not paying taxes or paying less than they should. But this is only one side of the picture. The other side shows shocking lapses, corruption and irregularities in the government which it needs to look into before identifying new taxation areas or raising the existing rates.
The taxpayers must have assurance that the extra money they will be paying will really would be spent on citizens' benefits in areas like municipal services, road maintenance, utility services that supply power and water, etc in which the private sector does not like to invest. When the people see these goals remain unrealised then taxation indeed becomes a one sided game with the government appearing more like a bully extorting money from them while they find no valid ground to whet this appetite .
The government should not only ask for more taxes from people but also try a lot harder than it is to really impress the taxpayers that what they pay to the government as taxes are being properly utilised in rendering services up to the level aspired by the citizens. There is every reason to think that the people will gladly pay their taxes in full and even decide happily to pay additional amounts or make sacrifices if they are convinced that their tax moneys are being well spent. In that event, both the government's tax collection targets as well as its aim to progressively increase the taxation base are likely to be smoothly achieved.
As it is, taxpayers every day see proofs of misuse of their tax resources. They regularly see their tax money squandered in breaking down or building, again and again, road dividers and footpaths to fill the pockets of the corrupt government employees and their chosen contractors. They find the supply of electricity and water and telephone and other services far from satisfactory and learn that their tax moneys are used to make up for the staggering losses in running the organisations providing the services. Experiences like these undoubtedly demotivate the taxpayers to pay additional or new taxes.
Besides, one very important side to taxation is to reduce the tax burden on businesses, in possible areas, to create incentives to invest more. The objective of expanding the base will remain unfulfilled if businesses fail to grow due to lack of fiscal incentives. The government must consider these factors with due seriousness in adopting and executing its fiscal policies.