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Saifur's 'no' to traders demand of cutting taxmen's power

Staff Correspondent
Finance Minister M Saifur Rahman yesterday ruled out giving in to businessmen's opposition to vesting tax officials with what they termed discretionary potvers, and said, "Hartals or strikes will not bring in any gain. They will have to pay their dueVat.”
As per a law enacted in 2001 and made effective from the current fiscal year, tax officials of certain ranks are empowered to take some
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specific legal measures, including arrest, raid and seizure, against tax defaulters.
"The government has many weapons to collect tax. If necessary, it will seize their [the traders'] commodities," Saifur warned.
Traders owe the National Bureau of Revenue (NBR) Tk 300 crore as outstanding value-added tax (Vat) for the last three years. In Dhaka alone, they have defaulted on Vat to the tune of Tk 200 crore.
The finance minister in a conciliatory tone added, "We shall ensure that no trader is harassed in the name of Vat collection. The taxmen will use the legal measures including arrest as the last option only, when all else have failed."
At a meeting with NBR Vat officials yesterday, Saifur stressed achieving the high Vat collection target of Tk 9,500 crore in this fiscal.
Following the meeting at the Secretariat, he told the press, "There are many business houses that have not paid Vat for the last few years. If we don't pay our taxes, how will the development programmes be carried out? Now that we have given notice to them, they are threatening us of strike and other agitation programmes."
"We have noticed the same trend while dealing with bank loan defaulters. When we notify defaulters to pay back, they allege we are harassing them," the finance minister quipped.
"This can't go on. They will have to pay Vat or we shall take appropriate legal measures," Saifur affirmed.
The minister instructed NBR officials not to resort to legal mea-
sures against traders unless they have no other alternative. "They should follow a sequence of actions in Vat collection. Firstly, Vat officials will phone the traders asking them to pay their taxes. Then they will send them letters, hold meetings with them and resort to all possible forms of interactions before turning to legal measures," he elaborated.
Saifur said, "In case of legal measures, Vat inspectors will not visit the business houses, assistant commissioners will."
Officials at the meeting discussed zone-wise Vat collection. It turned out that the only zone to have exceeded the collection target is headed by a female deputy commissioner, Tasmima Hossain Luna.
Drawing attention to this achievement, the finance minister observed women officials tend to perform better because they are the least corrupt. So, he said, more women officials should be given the charge of Vat collection.
Describing the problems they are facing, Vat officials told Saifur that as many as 361 Vat inspector posts are vacant, making it tough for them to cope up with the workload needed for achieving the target.
In response, the minister said filling up the posts would be put on a fast track. "If the Public Service Commission can't recruit against these posts fast enough, the NBR will do the hiring directly."
"And, in filling up these posts, we shall give priority to women candidates," he added.
On writ petitions that often slow down Vat and tax collection, Saifur said he will talk to the law minister about it to arrive at a solution.