Budget
Focus on Implementation, Not Size
Collected Photo
The upcoming budget cannot be described as large. On one hand, it is not very big in relation to national income. However, compared to the country’s fiscal capacity for financing, it is significant. Since every government is expected to present a larger budget than the previous one while implementing less than before, this has become a recurring pattern.
It is difficult to define this situation as design or play, but what is now important is to recognize it. There is no need to focus on the announced budget itself. Instead, attention must be directed to how much of the previous year’s budget was actually implemented. The entire focus, both of the public and policymakers, should shift from announcement to implementation.
Government revenue must increase. In this regard, individuals who hold Tax Identification Numbers (TINs) currently pay only 18 percent tax. Where is the remaining 82 percent? Identifying this untapped segment and bringing it under the tax net is the key issue. For example, motorcycle owners are often unwilling to pay tax, even though a tax exemption exists in some cases. If someone earns 30,000 taka a month, they should at least pay Tk 1,000 in tax.
Can it really be assumed that a person who buys a motorcycle worth Tk 200,000 does not earn 30,000 taka a month? If so, then why do they not pay tax? The reason is simple. Vehicle owners pay advance income tax, such as Tk 50,000, when purchasing a car, which is later adjusted during income tax settlement. But a motorcycle buyer, even if capable of paying Tk 1,000, is unwilling to do so because they have no tax file and no mechanism for adjustment. As a result, they avoid paying advance tax out of fear that the money will be lost.
This is the core issue. Those within the income tax net must be brought under taxation. At the same time, corruption and arbitrariness within the National Board of Revenue (NBR) must be reduced. There are allegations that NBR officials summon taxpayers, harass them, and then take bribes. Further comment is unnecessary. Measures must be taken to eliminate such practices.
Author: Honorary Fellow, Centre for Policy Dialogue (CPD)
