It is concerning that The National Board of Revenue (NBR) says they have found 89,672 companies without a Taxpayer Identification Number (TIN) in the past 21 months. Bangladesh's track record when it comes to the collection of taxes leaves a lot to be desired in general, and reports like this point out just how far behind we are in our national tax collection goals.
It is not a good indication of any economy when there are more than 56% of firms that do not have TIN numbers. Given the economic ambitions of Bangladesh, this is even more unacceptable as we need that tax revenue if we are to fulfil our ambitions. The NBR needs to compile a proper database of companies operating without TIN numbers. It has to be shared with relevant authorities and a coordinated campaign has to be launched.
However, the larger issue is that our tax system needs to be revamped. We don’t have a system that encourages and rewards tax paying. On the contrary, it is so easy to convert one's ill gains in the current taxation system than it is to pay taxes. Due to corruption within the NBR itself, even if one is tagged for not paying their taxes, getting off the hook is both easier and cheaper. Thus, there is very little incentive to pay taxes in our current system, if any. If we are to increase our tax revenue, we need to fix our system first.
The taxation system needs an overhaul. The authorities have to sit down with experts and stakeholders from all departments and plot out a system that will truly be beneficial in the years to come. Taxpayers should be recognized and rewarded, not vilified and hounded. Until we change this culture, both individuals and businesses alike will continue to look for ways to not pay their taxes.
