Pooling non-tax revenue

The new government's emphasis on collection of non-tax revenue is a smart move and may prove to be a master stroke if implemented properly. Here, the idea is to explore and exploit the non-tax base instead of relying only on the conventional tax collection. According to a report carried in this newspaper on Sunday last, the formulation of a comprehensive policy document under the title, "Policy for Non-Tax Revenue (NTR) and other Tax Revenue Collection and Proper Management 2026" is in progress in order to expand the non-tax revenue base. If the legal instrument comes into effect, non-tax revenue would be digitally deposited to the Treasury Single Account leaving no scope for tinkering or manipulating with the automated system. To check loopholes, oversight bodies will be there to scrutinise the share of revenue deposited. A centralised database will help check if there is any anomaly. 

Now the most remarkable points of the proposed framework are the identification of not only of the various government property or assets leased out to private parties but also dividends from state-owned enterprises (SOEs). Some of the initiatives like green taxes are quite innovative. For example, green levies or fees will be slapped on enterprises that pollute environment heavily. Enterprises that emit 25,000 tonnes or more of carbon dioxide (CO2) annually will be subjected to carbon tax. Vehicles that use fossil fuel and are not environmentally friendly may as well be made to pay such carbon taxes. Waste-related environmental pollution, plastic use and large contamination by industries are likely to be subjected to similar environmental charges. Vehicles running in metropolitan designated areas and on highways will be automatically charged through transponders. 

Clearly, with the rejection of manual system, there will be little scope for underhand deals. Here the oversight bodies should be manned by digitally smart people in required numbers. There should be no complaint that the bodies are understaffed and lack the latest information and communication technology (ICT) knowledge. Understandably, the system of a centralised database of enterprises will have to be authentic so that the oversight bodies can act complying with the rules. Similarly, busy zones in cities like Dhaka can be made considerably less congested if vehicles entering those areas are slapped high automatic non-tax charges. 

One of the stated goals is to depend on internally generated revenue. Now the question is, if the automatically deposited revenue from the sources under review can be enough to completely do away with reliance on foreign or multilateral aid and loans. For this to happen, the country may have to wait for some more years and this self-sufficiency is conditional to how the initiatives of pooling internal resources materialise. Any environment-related charge smacks of the climate fund rich nations are duty-bound to pay for their heavy emissions of CO2. Now the experience in this area of paying for pollution is hardly encouraging. The rich nations' non-compliance has turned out to be a routine. The major polluters of this country are not expected to be any better. But if the government can strictly enforce the provisions on the anvil, there is hope that it can serve several purposes at the same time. It will be an effective tool to fight official corruption and garner considerable revenue for preparing a nearly self-sufficient budget.