Finance Minister Muhith wants ‘simpler’ tax law

Finance Minister AMA Muhith thinks that the tax laws should be ‘simpler’ and the conditions for self-assessment tax system made easier.

He was speaking on people’s apathy to pay tax and the problems in the tax laws at the inauguration of a tax consultation centre in the Secretariat on Sunday.

“While paying taxes, many think they are going to face trouble. Many therefore do not pay taxes,” he said.

During his speech, he gave some advice to National Board of Revenue (NBR) Chairman Md Nojibur Rahman.

“You’ve launched self-assessment system in the tax law. This is good,” he said.

“But,” he added, “some sections of the law like stipulating more tax than the previous year are not good. Because income may have dropped the next year.”

“Many will be enthusiastic about paying taxes if these stipulations are changed,” he said.

Muhith also said some of the laws were ‘very complex’. “You’ll need to consider the human realities while making laws.”

“You’ll feel the difficulties when you go by the law. But it is also true that you’ll get better services if you go by the laws,” he said.

The finance minister suggested the NBR officials to be friendly to the citizens while collecting taxes.

He also expressed disappointment over the number of tax payers.

“It is a matter of shame that only 1.7 million of the 160 million people pay tax,” he said.

“If we can bring 10 percent of the population under the tax net, the number of taxpayers will rise to 16 million. It is possible slowly, but we need a widespread campaign for this,” he added.

He also suggested a primary target to bring three million people under the tax net.

NBR Chairman Rahman said government officials outside the Secretariat would also be able to get help from the consultation centre online.

The centre will provide information and advice on submission of tax return for the 2015-16 fiscal year until Sep 10.

Return forms will also be available at the centre.