Tax-dodging foreigners

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THE New Nation reported that thousands of foreigners who have long been working in different private organizations in the country renewing tourist visas instead of obtaining employment visa for the purpose of dodging-tax will be inspected soon by taxmen. The number of foreign tax-payers remained static at around 10,000 for the last two years though many statistics hinted that the number of foreigners working in the country is more than 2 lakh and the number is rising as the domestic universities failed to produce technically sound manpower to handle the large construction, RMG and manufacturing sectors. It is alleged that a section of local employers unethically help the foreigners to disguise their documents for evading tax. The NBR drive will frighten the foreign employees and force their employers to get tax identification numbers resulting in the boosting up of revenue income.

Allegations are rife that a section of foreign employees came to Bangladesh on tourist visas for avoiding tax payment. NBR said absence of data hinders the activity of taxmen to crosscheque the available documents. A databank comprising foreigners that has an automated updated system is under construction by a taskforce of NBR. By raiding some companies where more foreigners work will force others to be enlisted with the NBR. Some success to realize tax from the outgoing foreigners has been achieved as the NBR setup checkpoint at Airports and Benapole Land ports. The taxmen collected around Tk 60 million from 150 outgoing foreign nationals in July-August 2016 from the check-posts but the checkpoint is located at a far away place of the Ports and Custom Officials barely check the tax-clearance certificate from the foreigners and it is depriving the National Exchequer.

Bangladesh Bank data stated that in 2015, the foreign employees took home nearly USD 5 billion in salaries and allowances. We ask the NBR to go on a massive raid to realize tax from the tax-dodging foreigners and discourage local employers from employing foreigners. But there’s another side, the local institutions have to produce need-based manpower. For that, a comprehensive action plan and phase by phase activities to produce skilled manpower should be given priority. When 47 percent graduates of the country remains unemployed and thousands of youths each year strive for going abroad to earn bread and butter by risking their lives, how can the government allow foreigners to work here without paying tax?

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