The parliamentary watchdog on finance ministry yesterday fully backed the finance minister to compel more people to pay income tax, aimed at increasing revenue to meet the public expenditure and increasing demand for development activities across the country.
The 10-member parliamentary standing committee on finance ministry, assigned to ensure transparency and accountability of the executive, at its meeting observed that many rich people even in the semi-urban and rural areas evade income tax.
It recommended the finance ministry to form a high-powered technical committee or a national taskforce that would find out and recommend the government the ways to bring more people under the tax net, said committee chairman Abdur Razzaque, after the meeting at the parliament building.
According to the finance ministry officials, over 8 lakh people pay income tax while 60 lakh people have tax identification numbers (TINs).
“This means, a huge number of capable people do not pay tax. Even in the rural areas, a huge number of people should come under the tax net,” the chairman told reporters at a press briefing.
Abdur Razzaque said around 25% of the country’s total revenue came from income tax. “This should cross at least 40%,” he added.
Finance minister Abul Maal Abdul Muhith and his deputy MA Mannan also attended the meeting.
Before attending the meeting, the finance minister had a meeting with chairmen of four parliamentary standing committees at the national economic council auditorium.
The national board of revenue has fixed the revenue target of Tk125,000 crore. Upto the end of March, the revenue shortfall stood at Tk8,000 crore.
Razzaque said the tax-GDP (gross domestic product) ratio in Bangladesh was below 10% before the Awami League government taking office in 2009.
“Now it has crossed 13% and hopefully it would cross 14% in the next fiscal,” he said, referring that this ratio was lower than Nepal.
The committee expressed satisfaction over the economic performance of the Awami League government.
It suggested the ministry to be tougher on the question of curbing money laundering from Bangladesh to Malaysia and Canada.
