‘Tax return submission should be mandatory for NID holders’: FM Momen

[Black_cats]

​ ‘Tax return submission should be mandatory for NID holders’​ Published : Sunday, 28 May, 2023 at 12:00 AM Count : 47 Business Correspondent ‘Tax return submission should be mandatory for NID holders’ - - observerbd.com www.observerbd.com

‘Tax return submission should be mandatory for NID holders’ Foreign Minister AK Abdul Momen said those who have National Identity Card (NID) should have to submit tax return mandatory. He said this while addressing as chief guest at the memorial meeting on the late Finance Minister Abul Mal Abdul Muhith at the Economic Reporters Forum (ERF) auditorium on Saturday. The memorial meeting was organized by ERF. Former Bangladesh Bank Governor Fazle Kabir and former Finance Secretary Mahbub Ahmed were present as special guests. ERF President Mohammad Refayet Ullah Mirdha presided over the meeting while ERF General Secretary Abul Kashem moderated over the event.​ ​ The Foreign Minister said, "When Muhith Bhai was the Finance Minister, I proposed to make it mandatory for all those who have national identity cards to submit tax returns to increase the tax coverage. But till date that has not happened due to bureaucracy, if all those who have NID can be brought under tax coverage, tax-GDP ratio which is 7 to 8 per cent now will increase to 20 to 25 per cent." The Foreign Minister said, "The tax rate in our country is very high, and due to this the tendency of tax evasion is also high. If the tax is under a tolerable scope, the amount of tax collection will increase. The tendency of tax evasion will also decrease." He said, "One of the reasons for tax evasion in the country is the high tax rate. Besides, those who pay taxes are left with more harassment. As a result, journalists should highlight this issue. If necessary, it can be done in this budget." Dr AK Abdul Momen said, "The number of taxpayers in our country is very less. It is only seven and a half to eight percent. In a country of 170 million people, only 7.5 per cent pay direct taxes. But whoever has a social security card in America has to pay taxes and file a return. However, if the annual income is less than three thousand dollars a year, no tax is required. You have to file a return. If the income is more than three thousand dollars, even if it is a gift, he has to pay tax. As a result, the tax system is very strong." He said, "People of Bangladesh pay tax only on the basis of TIN. In this regard, I asked the Finance Minister to collect the tax of individuals through NID, keeping the system of paying taxes through TIN in companies and various corporate institutions. In this case the person having NID number must file the return. It is possible. This will increase the tax coverage. Then the tax payer number will no longer be seven and a half percent. It will rise above 20 per cent. Then the total revenue will increase." Former Governor Fazle Kabir said, "There was no need for preparation to talk about him. If you start from any place, you can say a lot. Muhith sir was a great minded economist. He took everything for granted." Former finance secretary Mahabub Ahmed also spoke on the occasion.​

 

[bluesky]

I have studied the taxation system in Japan. It is as excellent and efficient the country is in all other fields.

There is a saying that a country’s economy can only be as good as its taxation system. There is no corruption in the Japanese taxation system.

BD system is full of corruption. Get rid of the corruption and introduce taxation systems already successful in the developed countries like Japan, France, or England.

Corporate tax, personal income tax, property/ holding tax. Inheritance tax. For personal income tax, there shall be deductions for one spouse and a max of two children, etc.

There are hundred others that need to be explained, but it is not a classroom.