Many Bangladeshis view the whole concept of taxation with suspicion, that they are being robbed of their income -- while the truth of any economy is that taxes are necessary to ensure that a nation runs smoothly.
Of course, citizens have the right to know where their tax money is going, and public funds should never be misappropriated, so the task ahead is a tall order. But there is no doubt that our tax culture needs to change, and our tax system is in dire need of reform.
Governor of Bangladesh Bank Mohammed Farashuddin, in a recent webinar, pointed out that only 2.5 million people out of the 25 million who are in the tax net are actually paying their taxes. These numbers are disheartening, because without a strong and reliable tax base, it is not possible to build a society where people and the government are there for each other in times of need.
At this juncture in our development story, there is so much that needs to be done, not just in terms of shiny infrastructure projects that signal progress, but in terms of cleaning up our air and water, providing social security so that no one goes hungry, and providing universal health care.
For all of these things to be possible, we need a radical change in our tax culture, which starts by increasing transparency and fostering faith in the government. People should not be hounded or harassed, rather, citizens should feel it is their duty to come forward and pay taxes. Demystifying and fully digitalizing the process would go a long way in that regard.
