Imposing tax on low-income people, exempting the rich is illogical: Experts
Tax experts have criticised the government for imposing a mandatory tax of Tk2,000 on all Tax Identification Number (TIN) holders while exempting taxpayers with comparatively more assets in the proposed budget for the financial year 2023-24.
In a seminar organised by the Retired Tax Officers' Welfare Association at the National Press Club in the capital on Saturday, retired income tax officials said anyone needs a TIN to get 43 types of services. And, all TIN holders have to pay a mandatory tax of Tk2,000 to get those services. In this case, some people, who have no taxable income, have to pay the minimum tax.
On the other hand, people having assets worth over Tk3 crore had to pay a surcharge. In the proposed budget, the amount has been increased to Tk4 crore, which means the super-rich would get tax exemption.
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Former secretary and chairman of Securities and Exchange Commission (now BSEC) chairman Faruque Ahhme Siddiqui said the government should have given tax exemption to low-income people.
"The surcharge levied on assets is fixed mainly on declared value or deed value. In reality, the value of this asset may be several times more. As a result, asset or property owners get huge concessions due to the already existing system. It is not logical to exempt them again," he added.
Apart from this, the speakers emphasised preventing tax evasion and finding individuals and organisations with income rather than imposing a minimum tax on millions of low-income people.
Speakers said there is a huge deficit in the budget and the government will have to take loans from the banking system to cover the deficit. Borrowing from banks will hamper the flow of credit to the private sector, which will be challenging for the sector.
Former NBR member Aminur Rahman presented the keynote.
Among others, former president of Institute of Chartered Accountants of Bangladesh Mohammed Humayun Kabir, economic analyst and managing director of PwC Bangladesh Mamun Rashid, and former tax commissioner Bazlul Kabir Bhuiyan, were present on the occasion.
