We have been passing though a very tough time since the Covid-19 struck Bangladesh in March last year. Many of our people, particularly the poor and the low and middle-income groups are fighting to save their lives and livelihoods. But the economic impacts of this invisible war are far-reaching, and no one knows for sure when the crisis will be over.
The country is already under lockdown and is about to go for total 7-day nationwide shutdown from Monday due to sharp rise of the pandemic. During this uncertain period, the supply chain may disrupt, and prices of essentials may skyrocket. Thus, some tax and VAT policy measures need to be taken on an immediate basis before resorting to long-term policy adjustments. Different countries from time to time have adopted a number of measures to mitigate the sufferings of their citizens. Unfortunately, we have seen no such initiative as yet from the National Board of Revenue (NBR).
It has been observed that being annoyed with the tax offices’ arbitrary fixation of taxes, many taxpayers are compelled to move to different courts, resulting in non-realisation of taxes for a long time. Even apprehensions are there that the unrealised taxes may not be realised at all. There are also allegation that different service organisations are sending fat tariff bills without considering the hardship of people during the pandemic.
We also observed that imposition of VAT on essential commodities has compelled the middle and poor-income groups to make extra expenses. Many of them have lost their jobs and other means of income due to the pandemic. The government instead of increasing this indirect tax should take steps to build capacity of revenue officials to increase direct tax collection from the rich.
When the people are being pressed for paying higher gas, electricity and water charges, Tk 25,230 crore income tax have remained unrealised for the last nine fiscal years. A number of multinational companies, mobile operators, front ranking commercial banks, insurance companies, high officials of financial institutions and business people have evaded the tax by hiding actual incomes and showing loss in businesses.
The NBR should take steps to reduce VAT on daily essentials as well as minimise tax on the common people. The government should catch the plunderers who have siphoned off thousands of crores of taka abroad fraudulently. Our demand, relieve the common people of VAT, tax and other unnecessary bills at this time of the pandemic.
