Simplifying tax system not so difficult: Former central banker Farashuddin

Former Bangladesh Bank governor Mohammed Farashuddin thinks the country's tax system is still complex despite some efforts from the authorities, but it is not difficult to simplify it.

Farashuddin was speaking to a group of business and economic researchers at a local hotel on Wednesday at the 12th annual general meeting of the International Business Forum of Bangladesh or IBFB.

"The complex system is responsible for lower tax collections. ‎It has to be simplified," he said.

He also explained how to make this difficult task possible.

"It's not that difficult if the government, tax collectors and the public work together," he said.

The government has put tax collection online and taken many other steps to boost revenue. The businesses are pushing for a more simplified tax system.  

Bangladesh will have to ensure faster economic growth and take private investment as a ratio of GDP to 40 percent by 2025 from 22 percent now.

"For that to happen, the government has to be aware of its responsibilities. It will have to make investment-friendly rules and regulations, especially for private investors,” Farashuddin said.

The economist suggested matching Bangladesh’s growth with fast-growing economies, such as China and India.

He said pledges by five countries, which are Bangladesh's development partners, including India, to provide $40 billion in credit are a sign of their expression of confidence in Bangladesh.

He urged India to take initiatives for effectively using the marine resources.

Indian High Commissioner Harsh Vardhan Shringla, who was present at the programme, said experts from several countries are working to make the best use of the resources of the blue economy.

Apex trade body FBCCI's former president Abdul Matlub Ahmad, IBFB President Hafizur Rahman Khan, and its former president Mahmudul Islam Chowdhury also spoke.