Pay VAT to build nation, Finance Adviser stresses
Staff Reporter :
Finance Adviser Dr. Salehuddin Ahmed has called on all citizens to actively contribute to nation-building by ensuring compliance with tax and VAT obligations.
Speaking at a seminar marking VAT Day and VAT Week 2024 at the NBR Bhaban, he emphasised the critical role of responsible tax practices in boosting the economy and sustaining public services.
The seminar, organised by the National Board of Revenue (NBR), carried the slogan “VAT Dibo Jone Jone, Ongsho Nibo Unnoyone” (Everyone Pays VAT, Everyone Shares in Development).
It was presided over by NBR Chairman Md. Abdur Rahman Khan, with special guests including Finance Division Secretary Dr. Md. Khairuzzaman Mozumder and FBCCI Administrator Md. Hafizur Rahman.
Dr. Ahmed highlighted that participation in the form of paying
taxes and VAT is vital for running the government and availing various social and economic benefits. “This should not be limited to rhetoric but translated into tangible actions like paying income tax and VAT,” he stated.
He noted that VAT, introduced in 1991, remains a crucial aspect of revenue collection worldwide and urged citizens to fulfil their tax obligations to ensure uninterrupted services.
Drawing comparisons to Scandinavian countries where citizens pay higher taxes in exchange for enhanced services, Dr. Ahmed stressed the need for greater public awareness and improved government services to foster compliance.
“Non-compliance might bring short-term gains, but the long-term consequences will affect the next generation,” he warned, urging NBR officials to enforce laws vigilantly and transparently.
He also addressed the nation’s low tax-to-GDP ratio, highlighting the need to reduce dependency on tax rebates and incentives in preparation for the country’s graduation from LDC status. He emphasised that becoming competitive on a global scale requires minimising reliance on protections.
Finance Secretary Dr. Md. Khairuzzaman Mozumder echoed these sentiments, noting that while the NBR contributes around 85 per cent of the government’s total revenue, the tax-to-GDP ratio remains low.
He pointed out that development partners have repeatedly urged Bangladesh to strengthen revenue mobilisation and expressed optimism about future improvements with the deployment of additional manpower in the VAT and Customs wings.
NBR Chairman Md. Abdur Rahman Khan acknowledged the challenges of enhancing revenue collection, highlighting the need to expand VAT compliance and registration significantly. He estimated that registered VAT payers could be increased from 5 lakh to 20-25 lakh with stricter enforcement of regulations.
Khan also noted that reducing revenue leakage, even from minor errors, is essential for boosting collections and reducing the tax burden on future generations. He urged taxpayers to comply willingly and called on NBR officials to adopt a friendly and rational approach while addressing grievances to avoid forced tax collection.
The seminar concluded with a presentation by NBR Member (VAT Policy) Mohammad Belal Hossain Chowdhury, detailing various aspects of VAT, and a welcome address by NBR Member (VAT Implementation and IT) Dr. Md. Abdur Rouf. The discussions reinforced the shared commitment to strengthening tax compliance as a pathway to sustainable national development.