BUSINESS leaders cautioned that the new Income Tax Act that would be formulated to replace the existing one should not be a weapon for harassing businesses instead of being convenient and business friendly. The business leaders came up with the demand amidst government preparation to frame new income tax law when businesses are undergoing dull and sluggish growth from low turn over. Not only domestic investment and business expansion are facing slow down, exports are also facing setback and this is not time to create more bottleneck but help recovery of business by reducing pressure for tax burden.
Leaders of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) made the plea to the National Board of Revenue (NBR) now working on the new Draft Law. We must say they have raised the issue at the right time and NBR must pay heed to it instead of allowing it to be used by the government to realize more tax with least concern to what is happening in the business sector and small business in particular. Tax as the source of government revenue should not be punitive in the name of collecting fund to pay the bureaucracy. The tax collection should be done based on mutual cooperation and the process should be hassle-free. If the businesses do not feel comfortable with the new act, the incident of tax evasion would increase and more indiscipline will overshadow the entire system.
As per a report in a daily on Friday businessmen have called for curbing the discretionary power of income tax officials. Taxpayers’ complaint of growing hassles due to the excessive exercise of power by the tax officials. They have to then settle the case paying bribes or face cases in tax tribunal and higher courts. For neutral and fair judgment, their demand that the tax appellate tribunal should be brought under the Law Ministry instead of the NBR is quite justified. It must be free from NBR influence. The apex business chamber’s demand to scrap a provision that requires submission of 25 percent of the disputed tax in advance for filing an appeal at the tribunal also deserves consideration.
In our view the government should change its tax philosophy to make the system hassle free and transparent. It is known that nexus between taxmen and dishonest businessmen are causing big tax loss to the government. Many taxmen work as informal tax consultant of business houses and they create the loophole how to deceive the system. The new tax law should provide for strict monitoring of taxmen involvement with business. The plugging of the dishonest practice will be able to collect more revenue with lower rates than higher rates with more people deceiving the system. The new law must be sufficiently foolproof one of this regard.
Leaders of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) made the plea to the National Board of Revenue (NBR) now working on the new Draft Law. We must say they have raised the issue at the right time and NBR must pay heed to it instead of allowing it to be used by the government to realize more tax with least concern to what is happening in the business sector and small business in particular. Tax as the source of government revenue should not be punitive in the name of collecting fund to pay the bureaucracy. The tax collection should be done based on mutual cooperation and the process should be hassle-free. If the businesses do not feel comfortable with the new act, the incident of tax evasion would increase and more indiscipline will overshadow the entire system.
As per a report in a daily on Friday businessmen have called for curbing the discretionary power of income tax officials. Taxpayers’ complaint of growing hassles due to the excessive exercise of power by the tax officials. They have to then settle the case paying bribes or face cases in tax tribunal and higher courts. For neutral and fair judgment, their demand that the tax appellate tribunal should be brought under the Law Ministry instead of the NBR is quite justified. It must be free from NBR influence. The apex business chamber’s demand to scrap a provision that requires submission of 25 percent of the disputed tax in advance for filing an appeal at the tribunal also deserves consideration.
In our view the government should change its tax philosophy to make the system hassle free and transparent. It is known that nexus between taxmen and dishonest businessmen are causing big tax loss to the government. Many taxmen work as informal tax consultant of business houses and they create the loophole how to deceive the system. The new tax law should provide for strict monitoring of taxmen involvement with business. The plugging of the dishonest practice will be able to collect more revenue with lower rates than higher rates with more people deceiving the system. The new law must be sufficiently foolproof one of this regard.
