Finance Adviser Dr. Salehuddin Ahmed Tuesday urged all concerned to pay tax and VAT accordingly to participate in nation building and thus avail the various services putting due importance on ensuring compliance for overall revenue collection.
“To run the government, all will have to participate…It should not be limited only into verbally, rather it should be tangible like paying income tax, VAT. VAT was introduced in the country in 1991 and it is also in place all over the world. I think every citizen should pay tax properly,” he said.
The Finance Adviser said this while addressing a seminar marking the ‘VAT Day and VAT Week 2024’ held at the NBR Bhaban in the capital’s Agargaon area.
The slogan of this year’s VAT Day is “VAT Dibo Jone Jone, Ongsho Nibo Unnoyone”.
Presided over by National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan, Finance Division Secretary Dr. Md Khairuzzaman Mozumder and FBCCI Administrator Md Hafizur Rahman spoke as special guests on the occasion.
NBR Member (VAT implementation and IT) Dr. Md Abdur Rouf gave the welcome address while NBR Member (VAT Policy) Mohammad Belal Hossain Chowdhury made a power-point presentation on the various aspects of VAT.
Stressing that all citizens should have to pay tax according to their ability, the Finance Adviser said otherwise the country’s people would not get the desired services uninterruptedly.
He said through paying tax and VAT, the taxpayers would get social benefits and other indirect benefits like various social services from the government although in some cases those could not be available instantly.
Citing that citizens of the North European and Scandinavian countries comparatively pay higher tax to avail various improved services, Dr. Salehuddin said all concerned in this regard would have to be more conscious while the services would have to be improved further.
“The biggest thing is ensuring compliance…Some may dodge tax and VAT in the short-run, but eventually the next generation will suffer. We’ll have to pay tax to ensure the country’s development,” he said, asking the NBR officials to be more vigilant in enforcing the concerned laws, rules and regulations.
Turning to the issue of the country’s low tax to GDP ratio, the Adviser said that considering the LDC graduation, the country would have to come out from the trend of providing various protections like tax rebates and incentives to the various sectors. “Otherwise, we won’t become competitive,” he added.
He also directed the revenue board officials to become more friendly and rationale in realizing tax and VAT side by side considering the grievances of the affected businesses as well as not to realize tax by force.
Finance Secretary Dr. Md Khairuzzaman Mozumder said although the NBR accounts for realizing around 85 percent of the government’s total revenue, but the tax to GDP ratio is still low.
Even the development partners have also raised the issue for several times for which the revenue board should conduct strong efforts to augment revenue mobilization, he said.
The Finance Secretary said once the increased manpower at the VAT and Customs wing of the NBR comes into effect, then the revenue collection would get a boost while the budget deficit would be reduced further.
Citing that the revenue board is facing a big challenge of boosting revenue collection, NBR Chairman Md Abdur Rahman Khan noted that there is much more scope to raise VAT collection through strict enforcement of laws, rules and regulations.
Rahman said tax collection should be enhanced further in order to reduce the tax burden on the future generation and also to award a decent life to the next generation and thus develop the country.
Mentioning that revenue leakage takes place sometime due to small scale errors, he said they would go for taking drastic actions to ensure compliance as there is enough scope for raising the number of registered VAT payers to 20 lakh to 25 lakh from the existing level of 5 lakh.
FBCCI Administrator Md Hafizur Rahman underscored the need for creating a ‘tax culture’, consciousness and proper mindset to pay tax and VAT.
He also suggested for reducing the VAT rate and thus widening the VAT net so that people feel more encouraged in paying VAT.
Former FBCCI Directors Md Abdul Haque and ASM Kamaluddin also spoke on the occasion from the business community.
