The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) members have blasted the National Board of Revenue (NBR) for the continuous harassment by the field level tax officials.
They have also urged the NBR Chairman Nojibur Rahman to immediately stop the grassroots-level harassment right now for establishing a business friendly atmosphere for doing better business.
The business leaders came up with the complaints against the field level officials, mostly belonging to Value Added Tax (VAT) wing, at the ‘NBR-FBCCI Partnership Dialogue’ held at the apex chambers office in the capital yesterday.
Expressing their utter frustration and anger over the alleged harassment by the tax officials, the apex trade body members further warned the tax authorities that they won’t tolerate any more harassments in the name of achieving the revenue target of Tk1,76,370 crore for this fiscal as businessmen always want to pay taxes.
A total of 19 business leaders, out of 27 FBCCI directors and members, raised various complaints at the dialogue.
The FBCCI organised the dialogue to share views between the tax authorities and the businesses on the existing problems and challenges faced by the business in their practical life. The dialogue was organised with an aim to solve the problems and help NBR collect its revenue smoothly through partnerships.
FBCCI President Abdul Matlub Ahmad said, “Businesses are willing to pay tax, but they do not want to spend Tk3 for paying Tk1 as VAT.”
“We do not want to face any harassment,” he firmly said.
FBCCI former president Mostafa Azad Chowdhury Babu said, “Such partnership dialogues should be held at district levels as the tax officials in districts are creating pressures on the businesses for paying income tax and VAT which is spreading fear among the business.”
“Customs officials are using old reference value during assessment of products whereas it should not be done because of the implementation of ASYCUDA World, which is completely automated and have updated information on different values in its server,” said FBCCI former vice president Jashim Uddin.
He also urged the taxes authorities to allow Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) for issuing utilisation permission (UP) certificates to its members, which was approved by finance minister AMA Muhith in 2014.
FBCCI vice president Shafiul Islam said, “The businesses welcomes the enforcement, but don’t like harassment in the name of its implementation.”
“Field-level officials are doing too much as they could not full fill their targets in the last three months,” said FBCCI Director Mohabbat Ullah.
He also suggested the NBR to expand its tax net by bringing non-enlisted firms under VAT net instead of putting pressures to the existing taxpayers.
Bangladesh Garment Manufacturers and Exporters Association President SiddiqurRahman said, “The business want to pay all the VAT and taxes but want to live with dignity in the society.”
S A Quader Kiron, president of Bangladesh Dokan Malik Samity accused the NBR officials of maintaining good relations with those who do not pay tax but they harass those, who pay the VAT and other taxes regularly.
FBCCI Director Abu Motaleb, Bangladesh Woman Chamber and Commerce Industry President Hasina Newaz, Bangladesh Aluminium Manufacturers’ Association President Obaidur Rahman also made same complaints to the NBR chief while some other directors have come up with some suggestions at the dialogue.
FBCCI director Sheikh Fazle Rabbi urged NBR to formulate a realistic incentive structure for the new entrepreneurs coming up in the field of energy diversification.
FBCCI Director Khandker Ruhul Amin demanded flat VAT rate at 4% for both air conditioned and non- airconditioned hotel and restaurants. Currently, the rates are 15% and 7% respectively.
Haider Ahmed Khan from Dhaka Chamber of Commerce and Industry urged the NBR to help its revenue collection partners through maintaining a cordial relationship to benefit the traders and the nation.
The other demands made by FBCCI members include hike of export tax on rice import at 30% from existing 10% to help local growers, reduction of VAT on gold jewelries at 3% from the existing 5%, reduction of import duty on clinker, a raw material of cement, at a flat rate of Tk200 per ton from the existing Tk500 and withdrawal of VAT from trade license fees etc.
NBR member Farid Uddin said the revenue target of Tk1,76,370crore is 30% higher from last years target whereas the taxes authorities do not have institutional capacity to collect the sum, so they were focusing on partnerships.
“We will develop partnerships and the problems relating to VAT collection will be resolved through institutional reforms,” he said.
He also urged the business community to come forward for involving in such process.
In response to the complaints, NBR chairman Nojibur Rahman said, “Partnership dialogue was introduced for identifying the challenges, weaknesses and solutions in the revenue system.”
He stated that the tax authorities had taken a zero tolerance policy against any harassment on taxpayers and corruption.