Salehuddin vows to continue reforms in financial sector

Citing reforms in the revenue and banking sectors as two most important challenges before the country's economy, Adviser to the interim government on the Ministries of Finance and Commerce Dr Salehuddin Ahmed today vowed to continue such reforms.

"Immediately the challenges that lie before us are that revenue and banking sectors reform, the reforms in other sectors and political fronts will follow these," he said.

The Finance Adviser was addressing at a discussion on the changes brought in direct taxation through Finance Act, 2024 as the chief guest at the Multipurpose Hall of the National Board of Revenue (NBR) in the capital's Agargaon area in Dhaka on Saturday, reports BSS.

NBR Chairman Md Abdur Rahman Khan addressed the event with President of Bangladesh Civil Service (Taxation) Association M Lutful Azim in the chair.

Association Secretary General Sheikh Shamim Bulbul delivered the welcome speech while Tax Policy member AKM Badiul Alam and Tax Admin and Human Resource Management member GM Abul Kalam Kaikobad also spoke.

Commenting on the government's efforts to bolster the financial sector reforms, he said, "We're willing and serious in banking and revenue sector reforms and please supplement your (tax officials') efforts in this regard...Please make fast."

Mentioning that transparency and accountability should be the most important things, the adviser asked the tax officials to collect tax as much as possible for meeting the demands. "But, don't collect tax through putting pressure on the common people, don't cause pain to them so that people become assured seeing you...And they come to pay tax voluntarily," he continued.

He said now there is a tendency among common taxpayers that they would not come close to the tax officials to avoid harassment. "Please assure the taxpayers so that they could overcome such fear," the finance and commerce adviser added.

Urging all concerned irrespective of their class and creed to take part in revenue generation, Dr Salehuddin, also in-charge of the Ministry of Science and Technology, said: "We want to make the country self reliant...Although it's not possible now to become cent percent reliant as we'll have to still bring resources from abroad."

He said apart from restoring the law and order situation, the biggest problem is the current economic condition.

The adviser said a visiting US-delegation will put priority on the economy while a series of discussions in this regard would take place in the next couple of days.

"They (USA) might help us according to our needs...At least we can say we've started the tax reforms, motivating the officials...Then they might be assured to some extent...." he added.

The Finance Adviser noted some people have become restless to some extent over the last one month of the interim government to see the performances adding: "But, I can say at least in the financial sector, some visible steps have been taken like scraping the provision for whitening the black money, reforms are being taken place in the banking sector."

He went on saying, "We've already made the start and we'll aspire to attain our desired target with the help of yours... Reforms in health, social sectors will take some time."

Noting that the first principle of the government should be not to make any wastage of public funds, he said the government would not reduce the target for realizing revenues.

"We'll try to meet all the needs and expenditures through arranging resources of our own. But, it's also true that our own resources alone will not only work, but also external funding is needed apart from technical assistance," Dr Salehuddin said, adding that it should be kept in mind that the country should not become reliant on others.

"There is a saying that if your hands are in somebody's pocket, if he moves, then you have to move and we're feeling that in every aspect," he said.

"The donor agencies always try to suggest the government, but the government is trying to assert...We don't want to become fully dependent on the development partners," the adviser said.

Citing that many of the development projects are not being taken based on self needs or as per the requirements of the country, Dr Salehuddin said the government would try to undertake projects after proper scrutiny.

"We'll definitely take those projects which would be beneficial for us. In addition, if there is any requirement for foreign funding, then we'll explore that," he added.

Noting that direct tax is very important, he said the stake of direct tax in Bangladesh's revenue share is relatively less while the indirect tax like VAT is higher.

Mentioning that the basic principle of tax is equity and ability to pay, he said the tax burden should not be imposed only on some people and businesses.

Reminding the NBR officials that all concerned are staring at the faces of the NBR personnel, he said that no taxpayer should fear the revenue board staff while all should be rest assured of getting justice side by side there should be no leakage.

Noting that the tax officials discharge an import duty of the government, the adviser asked them to carry out their duties and responsibilities with more caution and sincerity.

He informed that a discussion would be held tomorrow with the US-delegation where the issues related to tax reforms, banking sector reforms, customs, tariff, avoidance of double taxation would get priority.

He said if the government does not improve the regulatory regime, then it would not be possible to attract much more FDI, FPI and portfolio investment.

"So, responsibilities upon you are high and please complete your tasks in a speedy manner... Don't do postmortem, rather become proactive with a focus in future," the adviser asked the tax officials.

Referring to his fellow colleague Dr Wahiduddin Mahmud's comment on the NBR building as 'impressive', Dr Salehuddin said the nice outlook of the structure might become necessary in some cases to convince people.

"But please also uphold your inherent talents and wisdom...Please match your words and work with the nice outlook of the structure of the NBR building," he said.

Citing that in direct taxation, the system in the USA is one of the best, the adviser said USA's system is very strict and it is very hard to attain such the USA standard.