IBFB emphasizes on improvement of the Tax Administration

The International Business Forum of Bangladesh (IBFB) held a Stakeholders Meeting on “Excessive Regulations on doing business in Bangladesh: A Study on Tax Administration” on Thursday, 1 October, 2009, at the IBFB Conference Room, IBFB Office, Banani, Dhaka. The meeting was attended by Dr. Akbar Ali Khan, Chairman, Regulatory Reforms Commission, and Mr. Abdul Mazid, former Chairman, National Board of Revenue (NBR). Mr. Mahmudul Islam Chowdhury, President, IBFB and former Mayor, Chittagong City Corporation, chaired the session.

In his speech, Dr. Khan said that uncertainty is a major factor that prevails in the Tax Administration, and this should be addressed right away.

At the same time, only those individuals with knowledge on taxes should be recruited as Tax Officials. Dr. Khan believes that honesty alone is not enough, and that tax officials should also be efficient. He felt that there should also be a change in Government Administration. Dr. Khan also said that tax officials are not popular anywhere in the world because they collect taxes, so any form of negotiation will not be beneficial for the Government.

Mr. Mazid was of the opinion that tax laws in Bangladesh were too old and outdated, and gave the example of the 1984 Tax Ordinance, which in reality was the Tax Law of 1922 with minor changes. He felt that Bangladesh needs some democratic and basic cultural laws as per the country’s perspective. Furthermore, tax laws should be simplified for the ordinary taxpayer to comprehend. 

In his speech, Mr. Chowdhury, President of IBFB, said that over the years, organizations have been frustrated by many of the problems and inefficiencies faced by the tax administration sector. As a result, growth and profitability of many businesses has been hampered. Mr. Chowdhury hoped that the relevant authorities will pay attention to the findings of IBFB and take necessary steps to bring about any suggested changes to this sector so that the overall business environment in Bangladesh may improve. 

Among other present included Mr. Safar Raj Hossain, former Secretary to the Government, Mr. ATM Saidul Alam, Vice President, IBFB, Ms. Selima Ahmed, President, Bangladesh Women Chamber of Commerce and Industry (BWCCI), and Mr. Abdul Karim, Managing Director, MIDAS.