Focus on direct tax to minimise income inequality, say speakers

Speakers at a national dialogue underscored the need for increasing the share of direct tax on domestic revenue mobilisation to minimise income inequality.

Marginal income people are bearing the brunt of the indirect taxes due to the erosion of their income, they added.

In the proposed budget for Fiscal Year 2023-24, the reliance on indirect tax collection remains unchanged.

They made the observations at a National level policy dialogue organised by Waive Foundation, with the support of Christian aid, at the city’s CIRDAP auditorium on Saturday.

MM Fazlul Huq, Director General of the BCS Tax Academy attended the dialogue as chief guest while former member (income tax) Dr Syed Aminul Karim chaired the programme.

Founder and Executive Director of Waive Foundation Mohsin Ali, BIISS Research Director Dr Mahfuz Kabir, First Secretary of National Board of Revenue (NBR) customs wing Dr Md Neyamul Islam, Country Director of Bangladesh part of Christian aid Nujhat Jabin, Special Correspondent of the Financial Express Doulot Akter Mala spoke on the function as special guests.

Deputy Director of Waive Foundation Kaniz Fatima delivered the welcome speech and moderated the programme. Khandaker Tahsin Ashrafi, Project Officer of the programme gave a presentation on ‘Promoting citizen’s participation for progressive taxation’.

Participants, including students, teachers, members of civil society, and non-government organisations from across the country gave their opinion at the dialogue.

Chief guest Md Fazlul Huq said investment in domestic revenue mobilization is required to bring efficiency to the collection process.

Dr Syed Aminul Karim said the government will have to motivate people to pay taxes without harassing or creating pressure on them.

Mr Mohsin Ali said the project was a challenge for the foundation as it’s a new area where fear factor and negative perception still persists.

He said educational curriculum should include tax education to create awareness among youths.

Dr Neyamul Karim said the NBR will have to gradually phase out the tax exemption culture and encourage people tax.

Dr Mahfuz Kabir said reform in the tax system is imperative to bring efficiency in the collection system.

Ms Nujhat Zabin participation of cross-section of people in the dialogue is encouraging and the recommendations would be placed to the policymakers.

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