There is a seasonality about it. When comes the time for revenue collection some issues, old and new, surface half in pretext or in self-justification, but mostly due to the tax administration faltering through dearth of fundamental reforms. Denying the government exchequer of the taxes it needs for running services is considered clever truancy and cheating by many, sometimes diluting the rightful claim to reducing taxes or even to demanding quality services in lieu of taxes. Tax evasion is the central issue rather than levying of taxes which are set out in slabs anyway. It can hardly be overstated that lack of collection from legitimate sources do indirectly increase the incidence of taxes on the poor. Although the problems of low tax base have been a persistent drag on the economy and, the resigned, if a kid-glove, approach to foreigners illegally keeping out of the purview of collection familiar deficiencies these have not been met with anything more than adhocism. Whereas they deserve sterner determined action, the authorities kept talking and talking letting the prime time pass back to their points of passivity. Now we talk about policy after the problem has been become rather entrenched.
The National Board of Revenue (NBR) is finally 'moving' to bring foreign nationals working for various government bodies without work permits under the tax net. It's common knowledge that different ministries, directorates industry and service sectors do employ foreign nationals. They are mostly listed people with different kinds of visas being obliged to have been registered at two levels, BIDA and host government or semi government authorities. The question remains about renewal of contracts or having regular work permits by way of validation as well as keeping a designated authority informed about their status. Whether they have a proper visa, not the tourist or on-arrival visas, which do not permit employment in the arriving country is an important denominator that can not be flouted. Just because we have shortage of mid level supervisors or technicians it can not be taken advantage of to gate-crash by anybody. The issues of salary and perks are linked to fair income distribution. They also reflect a security concern -- if through a slack screening and lack of civilized follow ups undesirable elements should slide through the slippery slope -- into the crowd!
What's particularly noteworthy is the unaccounted-for employment in the expanding private sector. Admittedly, many foreign nationals are working in the country without taking prior permission from the Bangladesh Investment Development Authority (BIDA) and other appropriate authorities appointed by the government. It is expected the foreigners intending to be employed on-arrival are made aware of the requirements in clear terms even though the category of visa should be speaking for itself. An any rate, mandatory obligation devolves on the employers themselves to refrain from abetting in unauthorised employment. If they employ people having no work permit from BIDA, they shall be liable for additional tax at the rate of 50 per cent or the tax payable on his income or Tk 0.5 million whichever is higher in addition to tax payable under the ordinance. A jail term is also attached for three years with a fine of Tk 0.5 million. It will be as good as its enforcement, no more no less.
Actually we need a database on the foreigners in the employ especially including the private sector. This will have to be updated on yearly basis to be meaningful.
Let's have inclusive, fair and pragmatic policy document on employment of foreigners as per international standards in keeping with Bangladesh's rising profile as an economy and a country.
