Commentary: Tax is for public service govt must show it

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The government is going to spend an additional outlay of Tk 64.585 crore for public administration in next budget for 2017-18 which shows a 48.35 percent rise over the previous year.

Looking another way almost the entire non-development budget of Tk 246.935 crore will be used to pay salary and allowances to civil servants, besides debt servicing on previous borrowing; which will increase by 17 percent next year. Moreover the budget suggests that the entire development budget is closer to the deficit financing of the budget by borrowing.

But notwithstanding to such growing budgetary deficit the salary of the government servants was almost doubled in 2015. Since them the allocation for public administration is only soaring while the government service to the common people is only shrinking.

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There is hardly any link now with growing tax that people pay and benefits they receive; which is almost entirely going to appeasing the public servants. The government wants to stay in power anyway and allocating more funds to bureaucracy overwhelmingly imposing tax on common people.

Despite enjoying all benefits, the National Board of Revenue (NBR) in a new circular last week has exempted all public servants from income tax on different allowances and financial benefits including lump sum grants provided to retired government officials, except on basic salary, festival allowances and bonuses.

 Such exemption will cover university teachers and staff as well but not school and college teachers. The list of exemption also includes employees of public and autonomous bodies, state owned banks, insurance and financial institutions, police, BGB, officials of development projects, judicial services and armed forces.
 
However the new tax exemption suggests that the government has singularly identified common people as the load bearer of all taxes while its employees will take away all benefits. There are no doubts the government employees as powerful lobbies are dictating the government while it is conceding to their demands to placate them to continue in power.

 In rendering public services the government has failed to ensure any public service – be it health, education, transport or security to public life to the satisfaction of the people. Even roads and rivers are unsafe. The common people can feel there is no government accountable to the people.

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