Finance Minister AMA Muhith on Sunday said the tax collection process should be simplified and taxpayer-friendly which should encourage the taxpayers not intimidate them.
Value added tax is not any coercive or repressive tool as people tend to think but it is a means through which people can participate in the development activities of the country, Muhith said while speaking as chief guest at a function held in observance of 'National VAT Day and VAT Week' organised by National Board of Revenue at the officers club in the capital.
He said Jatiya Mushok Diobsh was introduced for the first time to build trust and foster cooperation between the taxpayers and tax collectors.
The finance minister said the NBR was taking different initiatives, including holding tax fairs and tax surveys, for dissemination of information on tax details among people so that they are encouraged to pay VAT and other taxes regularly.
Once the taxes used to be collected at small rates as people's income was little. But now the government wants to collect more taxes from people as the country people's income has increased over the years, Muhith pointed out. 'But even then, the rate of tax in the country is far less than that in different neighbouring countries like Nepal and the Maldives,' he added.
The minister said that every year, there is a deficit budget that hinders development activities. 'So the government is thinking how to increase revenues to meet the deficit and strengthen development activities.'
Speaking on the occasion, economic adviser to the prime minister Mashiur Rahman said that the government should confiscate all the un-invested money from people who fail to show the source of their money.
'It is unjust that people who were earning money legally would pay more tax while people having money that has no legal source pay little or no tax,' said the adviser.
The government would not impose any illogical tax on people because that would be a burden on them, he said, adding that the small businesses should get tax rebate and big businesses should pay more.
Federation of Bangladesh Chamber of Commerce and Industry's president AK Azad, who was also present at the function, said all officers of National Board of Revenue should not be disrespected because of only a few corrupt officials who accumulated wealth through illegal ways joining in a nexus with some corrupt businessmen.
Azad said that if the government strengthens the Anti-Corruption Commission and let it operate independently, the country's gross domestic product would grow by an additional 2 per cent.
He said the government should facilitate investment in the industrial sector for generating employment for people who are unemployed.
'Please reduce the duty imposed on imports of raw materials and bring more eligible people under the tax net who are not being taxed,' he suggested.
The chamber leader said that agricultural sector and defence sector were enjoying much allocation and incentives in the national budget, but the two were yet to be bought under tax network.
NBR Chairman Nasiruddin Ahmed said the board has a target to collect revenues of more than Tk one lakh crore from the fiscal year 2012-2013.
NBR member VAT Abdul Mannan Patwary presented a key-note paper at the meeting presided over by NBR chairman Nasiruddin Ahmed. NBR commissioner Enayet Hossain, FBCCI directors Amir Hossain Chowdhury and Abdul Huq also addressed the meeting.
Source : New Age
