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Mixed reaction over Saifur’s statement

By S Y Bakht
Mixed reactions, varying from guarded approval to stro ng criticism, yesterday greeted the statement of Finance Minister Salfur Rahman madron Sunday on wide ranging issues focusing on tire mob I llsation of domestic resources, tax evasion and Investment from outside, among other matters.
While the approval, border Ing on praise came from ex perts for the Minister s de termined approach to all the issues under discussion, trade ciretes. contacted by The Dally Star, criticised Rahman for his "sweeping generalisations' about tax evaders and implied but unsubstantiated attack on the business community living in certain areas in Dhaka and
SuXy before a group of MPs the Finance Minister said without quoting any source, that only two out of a total of 100 big companies had paid taxes and that most of the 200 big businessmen evade their dues to the National Hoard of
Revenue (NBR) In this re
spect. he had specifically mentioned people living in Dhanmondi, Motijheel. Islam pur. Gulshan and Baridhara as being the worst offenders
Speaking on the basis of anonymity, like a few others contacted by this correspon dent, one leading businessman disclosed that all the Are com panies he ts Involved 1n had paid their tax every year “While several companies may evade their taxes.' he said, "there are many who do meet their commitments on time.'
Giving his personal opinion. Metropolitan Chamber of Co mmerre and Industries (MCCI) President Morshed Khan asked why these people were not being assessed on the taxes due from them Instead of their being treated more as a case of political persecution ?
1 think this indicates that there Is something wrong with the system.' he said, adding “the system loss in the taxing department has to lx- looked Into with equal seriousness as that In the energy sector '
He said that a total restruc
turing of the taxing system, with a built tn Incentive to pay taxes, should be contemplated
Jamal Uddin Ahmed, a chartered accountant by pro fession. and a former Deputy Prime Minister In the govern ment of the late President Zlaur Rahman described the Finance Ministers statement as an 'act of Indiscretion." adding that there should not have been a public discussion on the matter "It only creates more confusion.* he said
The representative of a trade body felt that the Minister’s blatant attack on the business community could ad versely affect the credibility of the private sector and. to that extent, hinder the pace of pri vatisatlbn In the country
Another expert expressed the fear that by raising the 1s sue of poor tax collection, against the backdrop of the need for maximum mobiltaa tion of domestic resources for development. Rahman was preparing the ground for a massive tax Increase both di rect and Indirect, tn his com
Ing budget
However, most observers agreed that instead of Issuing alarm signals about tax evasion the government should use the existing laws to go after the offenders.
In this respect, a senior Finance Ministry official say that the NBR has the total au thortty and all legal powers to deal with the tax evaders, from authorising 'swoops' to finding the records of hidden Income to taking legal action.
The NBR la also authorised to set up appellate tribunals and even appoint the members to the tribunals, he pointed
However, he admitted that 'inefficiency and corruption" in the taxation department also compromise tl>e system In addition to Individuals provid Ing false Income statements
He hoped that if the Import and trade records became more transparent with the In troduetkm of the value added tax (VA*n system In phases 'such evasion on trading and commercial Income would be come difficult "