Finance advisor wants doctors to issue fee receipts to expand tax net

“I’ve noticed that doctors collect fees but don’t provide receipts. If they issue receipts, there will be proper documentation for it," he says

Finance Advisor Salehuddin Ahmed has emphasised the need for a system where professionals such as doctors and lawyers issue receipts for their fees to expand the tax base.

“I’ve noticed that doctors collect fees but don’t provide receipts. If they issue receipts, there will be proper documentation for it," he said after attending a session of the Deputy Commissioners' Conference at Dhaka's Osmani Memorial Auditorium on Monday.

Instead of increasing tax rates, deputy commissioners, or DCs, have been instructed to focus on broadening the tax net, according to him. “It was the DCs who raised this issue. Many people have the capacity to pay taxes but are not doing so. The goal is to ensure tax collection from them,” he added.

He also pointed out that revenue collection efforts should be strengthened not only in Dhaka but in other cities as well. He mentioned that there is already a drive to collect VAT and taxes from rural areas.

The finance ministry has also called for an increase in online financial transactions to enhance revenue collection.

Encouraging business owners, doctors, and lawyers to use online platforms for transactions, Salehuddin said, “Many business owners still avoid online transactions. Cash payments make it difficult to bring all transactions under the tax net, and in many cases, it's not feasible.”

He explained that when doctors and businesses rely on cash payments, they avoid taxation. However, if payments are made via cards or mobile banking, they can be more easily taxed.

The advisor added that the finance ministry will soon issue guidelines to encourage digital transactions. “The focus is on increasing digital transactions, which will ultimately boost revenue collection.”