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Former National Board of Revenue member (Customs Policy) Farid Uddin has sought a clear announcement from the government on the implementation of tax reforms in the upcoming budget.
He said two important reports had already been prepared on NBR reform, highlighting in detail various problems related to tax policy, tax management, automation, integrated digitalisation, manpower, VAT, customs and income-tax systems, and structural weaknesses in tax administration.
Farid Uddin made the remarks at a pre-budget roundtable jointly organised by The Financial Express and the Institute of Chartered Accountants of Bangladesh at CA Bhaban in the capital’s Karwan Bazar.
He said the interim government had formed two committees on NBR reform. One of the committees submitted its report on November 21 last year, while the other submitted its report around January 18 or 20 this year.
“I have these two documents,” Farid Uddin said. “The concerns that you have raised here today—everything about the tax system—are in these two documents.”
However, he expressed disappointment that no response had yet been received from the government on the reports. He also said the issue had not been adequately covered by the media.
Calling on business organisations to take the matter forward, he said the parties concerned should review the two reports before submitting budget proposals, as many of the proposals businesses want to place in the budget had already been addressed in the reports.
“I took the initiative and told the FBCCI leaders: come, let us review these two documents,” he said. “The proposals that you will make in the budget are addressed here.”
He said a collective national consensus document could be prepared on the basis of these reports. If such a document is presented to the government, the government can make an announcement on it in the upcoming budget.
“Discuss and decide which of these to accept and which to reject,” he said. “Give a collective national consensus document to the government. The government should announce it in the budget.”
According to Farid Uddin, political commitment is the most important requirement for implementing tax reforms. If the recommendations are consistent with the government’s manifesto and political commitment, there will be an opportunity to implement them.
He said the government’s manifesto sets a target of building a one-trillion-dollar economy and increasing the tax-to-GDP ratio to 15 per cent by 2034. It also includes a commitment to strengthening the economy and simplifying the tax system.
“They want to strengthen the economy. They want to simplify the tax system. This commitment is there,” he said.
Drawing the attention of the adviser to the prime minister for finance and planning, he said the relevant document could be vetted by trusted people of the government. If it is found acceptable and consistent with the government’s manifesto and political vision, the implementation of tax reforms should be announced in this year’s budget.
“I will tell the adviser: have this document vetted by your trusted people. If they find it acceptable, if it is consistent with your manifesto and political vision, then make this announcement in this year’s budget—we want to do this,” he said.
He further said that although many discussions, seminars and proposals had been made in the past on various problems of the tax system, no real results had been achieved. Therefore, this time, the process should not remain limited to discussion but move towards implementation.
Farid Uddin said tax reform is not an isolated administrative issue; rather, it is a matter of national economic and political decision-making. A clear announcement in the budget, he said, would create an opportunity to begin long-term reform of the tax system.