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Income Tax: to be the symbol of social status June 21, 2007

Posted by bdoza in BANGLADESH, Budget, ECONOMY, GOVERNANCE, Income Tax.
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In the Budget Speech, the Finance Adviser declared that CG will make the Income Tax the symbol of social status.

Nice objective. But before that let us see what the state of Income Tax is.

Now, the Income Tax means something imposed from above. The tax payer feel that Government is imposing income tax without extending due services to the tax payers

Income Tax creates worry to many at the end of the financial year because of the harassment awaiting for them in the tax offices.

Income tax creates a sort of agony in many who feels disturbed to pay extra expenses to the tax offices. It is not that people are not willing to pay but the system is such that they are not feeling easy to pay. It is known that people in the Tax offices are more willing to extract money for them than for the state.

It is felt that the rich are paying proportionally less income tax to the state than common people as he can easily satisfy the office. Compare the stress felt by a richer man to pay Tk. 10000 to the office than paying Tk. 5000 by a middle income man. But consider the loss that is incurred by the state. So richer people can able to dodge larger amount of money by paying extra cashes to the office.

Among the taxpayers, it is not taken as credit –who is paying how much. It is rather opposite- who has dodged how much is taken as credit. Our Governments over the years failed to create a society where higher tax payers are acknowledged and acclaimed.

What benefit Government is giving to the tax payers. Except the label of CIP, I personally know nothing.

The ordinary citizen has some suggestions:

1) Government can consider extending the financial benefits on the basis of Income taxes given by the individuals-such as fixing the amount of loan by the banks and financial institutions on the amount of taxes, etc.

2) let the tax of the individuals be disclosed or publicly known. So that culture develop to compare the taxes, not the income or the wealth,

3) Clean the Income Tax office from corruption so that people of the departmen do not consider it as a department to make illegal money ; Few days back I met an Engineer who passed from BUET and now working as a Deputy Commissioner of Taxes; but why on Earth a BUET Engineer would choose the Income Tax as his career department!

4) Simplify the systems of payment of income tax so that a tax payer does not the need the help of a middle man ( income tax layer or office man ) to prepare his return

5) Gradually electronic payment system may be introduced where the tax payer will pay his taxes through internet which is now followed in developed countries

6) Slim down the Income Tax Department , make it more automated. The unnnecessary staffs has created a negative image of the dematment than doing any good

7) In assessment of the professional income, the help of the professional bodies can be taken. It will be more accurate and rational than the so called of the so called Inspectors, who thrive on their twisted assessment; etc.

Bdoza

Comments»

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