To say that Bangladesh has a tax collection problem at this point would be a gross understatement; despite our stellar growth, there is little doubt that, as a result of our failure to collect taxes, our economy has been deprived of significant sums that would have gone a long way to facilitate our growth further.
However, while this failure to collect taxes is undeniable, what is also true is that historically, our tax collection system has not been the most taxpayer friendly. This was opined at a recent seminar in the capital, who stated that speedy completion of various automation activities of the NBR along with better coordination among the three departments –– income tax, value added tax (VAT), and customs management system – is the need of the hour to see improvement.
Online tax payment has also been talked about for many years. Yet, it has been disappointing to see that the progress, in reality, has been very little; it continues to be a cumbersome process for Bangladeshis to pay their taxes.
Our taxation policies also remain questionable; experts have raised the issue of new Income Tax Laws and Customs Law not yet being passed despite long discussions, along with the rationale of the existing 15% VAT rate, which disproportionately affects small businesses.
For too long, honest taxpayers have also been victim to the tax authorities’ harassment while the powerful in society have enjoyed impunity, depriving the country of millions in revenue. Ultimately, it is plain to see that the entire system requires significant thought and a possible overhaul.
Together with all of the existing issues that continue to exist, it is about time the authorities look at our broken tax system and fix it, else all of our progress could be threatened.