“No alternative to automation to increase revenue”

State Minister for Finance Waseqa Ayesha Khan has commented that there is no alternative to automation to increase revenue.

“Currently, everyone can submit returns online. As the informal sector of Bangladesh is very large, tax collection from this sector is important as it can contribute a lot to government treasury,” she said while addressing a discussion, titled titled “Necessary framework for increased utilizing of domestic resource of Bangladesh”, organised by the Policy Research Institute of Bangladesh (PRI) at a hotel in Dhaka on Tuesday (April 30).

Chaired by Prime Minister's economic adviser Dr Masiur Rahman, the discussion was participated by Chairman of National Board of Revenue (NBR) Abu Hena Md Rahmatul Muneem and Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) President of Mahbubul Alam as special guests.

PRI Executive Director Dr Ahsan H Mansur presented the keynote at the discussion conducted by PRI chairman Dr Zaidi Sattar.

Speaking at the discussion, the state minister for finance said, “Discussion about the capital market is necessary in addition to the discussion about money market, and private and government loans. Everyone needs to work on how to bring more good companies to the capital market. Then the pressure on the money market will reduce. It is important to expand the capital market, equity market and bond market.”

Stressing on the importance to the creation of ‘Made in Bangladesh’ image, NBR Chairman Abu Hena said, “I feel bad when I see the products of different countries in the country's market. NBR provides tax exemption to support a lot of industries despite incurring the loss of huge amounts of revenue. It has resulted in the creation of numerous employment opportunities. Moreover, various industries have developed due to this. Still now, support is provided to production-oriented sectors to advance the ‘Made in Bangladesh’ image/brand.”
“The corporate tax rate has been reduced over the years for the sake of business expansion. But many do not want to pay taxes. They lobby for tax exemptions. All kinds of problems the businessmen can face and resolve, but when it comes to the issue of paying tax, they become reluctant,” he said, adding, “They consider paying taxes as a burden. This mentality should be changed for the sake of the greater interest of the country.”

At the discussion, FBCCI President Mahbubul Alam said, “Businessmen want to pay tax, but do not want any harassment. The informal sector should be brought into the formal sector. Apart from Dhaka and Chattogram, trade has now spread to the district and upazila levels. They should be brought under the tax net.”

He suggested that instead of putting too much pressure on the traders who regularly pay taxes, the NBR should identify new taxpayers.

Like the state minister, this top business leader also thinks that there is no alternative to automation.

In the keynote, Ahsan H Mansur said increasing tax revenue is essential to stabilize the fiscal situation in the short term. If more comprehensive reforms are not implemented, there will be a revenue loss of around Tk 50 trillion by 2041.

PRI Vice Chairman Dr Sadiq Ahmed, MCCI President Kamran T Rahman, CSE Chairman Asif Ibrahim, and Dhaka Chamber of Commerce & Industry President Ashraf Ahmed and panel discussants also addressed the discussion.