Law Minister Anisul Huq has underscored the need for an easy read and understandable tax act for rural people with least ability to pay their minimum taxes.
“We need to formulate the act in a way that the rural businesses can easily read and understand the law,” the minister said while addressing a “Consultation meeting regarding formulation of new income tax act” held at the NBR headquarters at Shegunbagicha in the city yesterday.
Speaking as the chief guest, the minister observed: “If the income tax act was formulated in an easy language, it could easily establish a taxpayer-friendly system in the country.”
The Direct Tax Act Code was drafted in 2011 with technical and financial support from the International Finance Corporation (IFC). The direct tax code will replace the Income Tax Ordinance 1984.
“The formulation of direct tax code, which is now under process, is not yet completely acceptable to all,” he said.
He said the tax base has increased by threefold and the government aims to increase it further.
“Therefore, the law has to be taxpayers friendly and business friendly.’’
The minister also urged the NBR to make a balance between rigidity and flexibility in the act.
“You (NBR) need to be rigid in implementing the best principles alongside providing tax exemption facilities,” he explained.
He also stressed the need for a guideline in the direct tax code on changing the attitude of tax collectors.
Addressing the meeting, NBR ADR facilitator Humayun Kabir urged the NBR to look on how to reduce the procedural difficulties as many tax issues are taken to the court due to complexities.
NBR former member Aminur Rahman said: “The earlier draft was not approved by the board as it was not similar to the international best practices.”
“If we go for implementing international best practices, there are some problems on the ground reality as most of the people in Bangladesh make their transaction with cash and keeps manual documents whereas in abroad transactions are mostly made through cards, which automatically keeps records of income,” he added.
NBR former member Syed Aminul Karim stated that the NBR should decide first on whether it would for a revolutionary or evolutionary process.
He suggested the NBR to adopt an evolutionary process and to move forward step by steps to implement the direct tax code.
“If you (NBR) want to integrate the existing and upcoming laws together, it needs to make a committee involving private sector, government and NBR officials for reviewing the chapter by chapter before finalising the draft law,” he added.
NBR Chairman Nojibur Rahman said they would implement a taxpayers’ friendly and business friendly direct tax law, which would be simplified from the existing one.
Representatives from leading chambers including Federation of Bangladesh Chambers of Commerce and Industry, Dhaka Chamber of Commerce and Industry, Metropolitan Chamber of Commerce and Industry, different ministries, Tax Appellate Tribunal, Alternative Dispute Resolution facilitators, and NBR members also spoke on this occasion.