Govt decides to separate tax policy from collections; Dr Salehuddin tells IBFB conference

Press Release “”
[Dhaka, 15 December 2024] Finance adviser to the interim government Dr Salehuddin Ahmed on Sunday said the government has decided to separate tax policy from tax collection activities to ensure proper functioning of the country’s revenue board.

The finance adviser said the move of separating two major parts of the National Board of Revenue (NBR) has long been discussed but unfortunately it has not been implemented yet.

“We have decided in principle to separate the tax policy part from the tax collection. It means people who make tax policy will not be responsible to collect tax. But it may take some time,” he said while speaking as the chief guest at the opening session of Annual Conference 2023 of International Business Forum of Bangladesh (IBFB).

The IBFB hosted the event at Gulshan Club in the city where distinguished fellow of Centre for Policy Dialogue (CPD) Dr Debapriya Bhattacharya was the conference speaker.

Talking about various reform initiatives, the finance adviser said the so-called incentive regime for protecting the infant industries is set to be over as they will come of the culture giving undue concessions to some industries for years.

He said the country has been taking care of the infant industries for the last 40-50 years with giving tariff benefits but they still remain in the same state, which is unexpected.

Dr Debapriya Bhattacharya said the country urgently needs a coordinated, effective and trustworthy mid-term economic planning, which will help regain confidence of the investors, development partners and trade partners across the globe.

He said investment will not come considering the economic roadmap of just 6-12 months. It requires mid and long-term planning. The investors want to look at some indicators like tax structure, exchange rate and interest rate regimes in the long term before taking any decision over their business expansion.

“So, we need to accumulate all these things in the mid-term economic planning, which will give some sorts of respite to our investors, development and trade partners under the changed circumstances,” the country’s noted economist said.

Speaking as special guest, mission director at USAID Reed J. Aeschliman said development has always become sustainable when it is led by local entities. This is why USAID will continue to strengthen partnership in many ways.

“Our approach is harnessing the power of the private sector to accelerate development through making more direct investment,” he added.

In opening remarks, IBFB president Humayun Rashid said the platform has been working over the years to create a better business climate in the country.

Terming the country a place of opportunities, he said the country needs to explore the opportunities through innovations and proper education, digital education in particular.

IBFB founding president Mahmudul Islam Chowdhury gave a vote of thanks in the event.