What Does the Government Do with Tax Money? — Question from BTMA President

Photo: Collected

News Desk: The President of the textile mill owners’ association BTMA, Shaukat Aziz Russell, has questioned the government, asking: “What do you do with tax money?” He also proposed forming a dedicated cell to ensure whether tax revenue is being properly spent.

Referring to the late former finance minister Saifur Rahman, he said that Saifur Rahman had supported the country’s industrialisation through various policy measures. “Are we on that same path now? I don’t think so. Our businesses are now declining. Industries are shutting down, and the government is not ensuring the necessary business environment or opportunities. Policy reforms are not happening.”

Addressing the government, Shaukat Aziz Russell said: “If you do not receive tax, you arrest people and send them to jail. But what do you do with my tax money? The way you enforce tax collection through arrests, there must also be accountability on how you spend taxpayers’ money. A monitoring cell should be established for this. You build bridges, but no roads, and then say there is no money. The government’s tendency to spend more than its income must be changed.”

The BTMA president said that in the upcoming budget, it should be clearly stated what percentage of funds will be allocated to industries, and how much will be allocated to the health and education sectors.

These remarks were made at a pre-budget roundtable discussion organised by the Institute of Chartered Accountants of Bangladesh (ICAB) and the English daily The Financial Express at the CA Bhaban in Karwan Bazar, Dhaka. The chief guest at the event was Prime Minister’s Economic and Planning Advisor Rashed Al Mahmud Titumir.

In the discussion titled “Digital Accounting and Revenue Collection,” ICAB President NK A Mubin said that the size of the country’s economy is growing. The upcoming budget is expected to be around Tk 9 trillion, while the revenue collection target may be around Tk 6 trillion. In the current economic reality, he said revenue targets should focus more on direct taxes to ensure sustainability. However, if VAT evasion and tax avoidance continue in the economy, increasing revenue collection will not be possible.

ICAB Council Member Sabbir Ahmed said in his keynote paper that the government must move away from traditional paper-based accounting and reporting systems to build an accountable financial structure. He added that a digital accounting system would enable real-time reporting, strengthen financial monitoring, and reduce opportunities for tax evasion and fraud.

President of the American Chamber of Commerce in Bangladesh (AmCham) Syed Ershad Ahmed said that three departments of the National Board of Revenue (NBR) are harassing businesses. He added that unless these departments are restructured, it will not be possible to increase foreign investment. He stressed the need for automation in customs as a first step.

He further said that digital accounting and auditing systems can help reduce corruption, improve Bangladesh’s image among foreign investors, and lower business risks by increasing transparency. Foreign investors often view Bangladesh as a corrupt country, he said. Although corruption cannot be completely eliminated, it can be brought down to a tolerable level through the introduction of digital systems.

Prime Minister’s advisor Rashed Al Mahmud Titumir said that tax evasion is happening today because there is no connection between citizens and taxes. “If citizens do not receive services, why would they pay taxes?” he said. He added that from the next fiscal year, income tax return acknowledgement receipts will include details of how much money is spent in sectors such as health and education.

Other speakers at the event included President of Dhaka Chamber Taskin Ahmed, former NBR member Farid Uddin, and Editor of The Financial Express Shamsul Haque Zahid, among others.