Citing reforms in the revenue and banking

sectors as two most important challenges before the country’s economy,

Adviser to the interim government on the Ministries of Finance and Commerce

Dr Salehuddin Ahmed today vowed to continue such reforms.

“Immediately the challenges that lie before us are that revenue and banking

sectors reform, the reforms in other sectors and political fronts will follow

these,” he said.

The Finance Adviser was addressing at a discussion on the changes brought in

direct taxation through Finance Act, 2024 at the Multipurpose Hall of the

National Board of Revenue (NBR) in the capital’s Agargaon area today.

NBR Chairman Md Abdur Rahman Khan addressed the event with President of

Bangladesh Civil Service (Taxation) Association M Lutful Azim in the chair.

Association Secretary General Sheikh Shamim Bulbul delivered the welcome

speech while Tax Policy member AKM Badiul Alam and Tax Admin and Human

Resource Management member GM Abul Kalam Kaikobad also spoke.

Commenting on the government’s efforts to bolster the financial sector

reforms, he said, “We’re willing and serious in banking and revenue sector

reforms and please supplement your (tax officials’) efforts in this

regard…Please make fast.”

Mentionable, transparency and accountability should be the most important

things, the adviser asked the tax officials to collect tax as much as

possible for meeting the demands. “But, don’t collect tax through not putting

pressure on the common people, not causing pain to them so that people become

assured seeing you…And they come to pay tax voluntarily,” he continued.

He said now there is a tendency among common taxpayers that they would not

come close to the tax officials to avoid harassment. “Please assure the

taxpayers so that they could overcome such fear,” the finance and commerce

adviser added.

Urging all concerned irrespective of their class and creed to take part in

revenue generation, Dr Salehuddin, also in-charge of the Ministry of Science

and technology, said: “We want to make the country self reliant…Although

it’s not possible now to become cent percent reliant as we’ll have to still

bring resources from abroad.”

He said apart from restoring the law and order situation, the biggest problem

is the current economic condition.

The adviser said a visiting US-delegation will put priority on the economy

while a series of discussions in this regard would take place in the next

couple of days.

“They (USA) might help us according to our needs…At least we can say we’ve

started the tax reforms, motivating the officials…Then they might be

assured to some extent….” he added.

The Finance Adviser noted some people have become restless to some extent

over the last one month of the interim government to see the performances

adding: “But, I can say at least in the financial sector, some visible steps

have been taken like scraping the provision for whitening the black money,

reforms are being taken place in the banking sector.”

He went on saying, “We’ve already made the start and we’ll aspire to attain

our desired target with the help of yours… Reforms in health, social

sectors will take some time.”

Noting that the first principle of the government should be not to make any

wastage of public funds, he said the government would not reduce the target

for realizing revenues.

“We’ll try to meet all the needs and expenditures through arranging resources

of our own. But, it’s also true that our own resources alone will not only

work, but also external funding is needed apart from technical assistance,”

Dr Salehuddin said, adding that it should be kept in mind that the country

should not become reliant on others.

“There is a saying that if your hands are in somebody’s pocket, if he moves,

then you have to move and we’re feeling that in every aspect,” he said.

“The donor agencies always try to suggest the government, but the government

is trying to assert…We don’t want to become fully dependent on the

development partners,” the adviser said.

Citing that many of the development projects are not being taken based on

self needs or as per the requirements of the country, Dr Salehuddin said the

government would try to undertake projects after proper scrutiny.

“We’ll definitely take those projects which would be beneficial for us. In

addition, if there is any requirement for foreign funding, then we’ll explore

that,” he added.

Noting that direct tax is very important, he said the stake of direct tax in

Bangladesh’s revenue share is relatively less while the indirect tax like VAT

is higher.

Mentioning that the basic principle of tax is equity and ability to pay, he

said the tax burden should not be imposed only on some people and businesses.

Reminding the NBR officials that all concerned are staring at the faces of

the NBR personnel, he said that no taxpayer should fear the revenue board

staff while all should be rest assured of getting justice side by side there

should be no leakage.

Noting that the tax officials discharge an import duty of the government, the

adviser asked them to carry out their duties and responsibilities with more

caution and sincerity.

He informed that a discussion would be held tomorrow with the US-delegation

where the issues related to tax reforms, banking sector reforms, customs,

tariff, avoidance of double taxation would get priority.

He said if the government does not improve the regulatory regime, then it

would not be possible to attract much more FDI, FPI and portfolio investment.

“So, responsibilities upon you are high and please complete your tasks in a

speedy manner… Don’t do postmortem, rather become proactive with a focus in

future,” the adviser asked the tax officials.

Referring to his fellow colleague Dr Wahiduddin Mahmud’s comment on the NBR

building as ‘impressive’, Dr Salehuddin said the nice outlook of the

structure might become necessary in some cases to convince people.

“But please also uphold your inherent talents and wisdom…Please match your

words and work with the nice outlook of the structure of the NBR building,”

he said.

Citing that in direct taxation, the system in the USA is one of the best, the

adviser said USA’s system is very strict and it is very hard to attain such

the USA standard.