How much tax does S Alam pay?

• S Alam Group has syphoned off over Tk1.5 lakh crore in bank loans
• Chairman's declared net worth was around Tk279.52cr in FY22
• His taxable income for FY23 was just over Tk19.20cr
• He paid Tk6.29 crore in income tax for FY22
• His brother's declared net worth in FY22 was around Tk30.33cr

The allegations against S Alam Group are staggering. Its chairman is accused of syphoning off over Tk1.5 lakh crore in bank loans, a figure that exceeds the National Board of Revenue's entire income tax collection of Tk1.31 lakh crore and Tk1.08 lakh crore in import taxes for the fiscal 2023-24.

But how much tax does Saiful Alam Masud, chairman of S Alam Group, actually pay?

This question has gained renewed prominence as the businessman emerges as one of the most controversial figures in Bangladesh, especially following the ouster of Sheikh Hasina's government on 5 August.

According to a Bangladesh Bank audit report, S Alam's net worth, as declared in his tax return for FY22, was around Tk279.52 crore. His taxable income for that financial year was just over Tk19.20 crore, and he paid around Tk6.29 crore in income tax.

In the same fiscal year, S Alam's brother, Abdus Samad, declared assets worth just over Tk30.33 crore on his tax returns. His taxable income for that year was reported at just over Tk4.86 crore, with a tax payment of more than Tk1.46 crore.

The Bangladesh Bank conducted the audit in January this year.

A central bank official involved in the audit, speaking on condition of anonymity, told TBS, "While auditing a loan taken in the name of S Alam Cement, we came across this information regarding the tax returns of Saiful Alam and Abdus Samad."

Tax lawyer Priya Dey told TBS that if a person's net worth was Tk280 crore two years ago, and it increased by 15%-20% annually, their current net worth would be around Tk400-Tk500 crore.

"Other family members, such as Saiful Alam's brother Abdus Samad, have declared Tk30 crore. The combined wealth of Saiful's wife, brother, and two sons could exceed Tk500 crore. In total, the declared assets of the S Alam family would be a maximum of Tk1,000 crore," the lawyer said.

According to Professor Dr Muinul Islam, an economist, while the Bangladesh Bank has already taken several strict measures to recover S Alam's loans, there remains significant doubt about their effectiveness.

"Most of the loans taken out by Saiful Alam, his family, and associates have been syphoned out of the country. The reality is that this smuggled money is unlikely to return to the country or the banks. The immediate priority should be to find a way to reopen the banks or save them from the current crisis," he added.

The S Alam Group and its affiliated companies took more than half of Islami Bank's total loans of Tk1.75 lakh crore, according to the chairman of the new board of the bank.

The group has borrowed at least Tk75,000 crore from Islami Bank, with the majority – around Tk42,000 crore – taken from the bank's Khatunganj branch in Chattogram.