Instead of raiding delinquent taxpayers to sniff out undeclared cash, the Bangladeshi government this year sought another approach to increase its collections from those who shirk their tax obligations: it organised an income tax fair. The five-day event, which ended on Thursday, was organised in Dhaka, the capital, and Chittagong by the National Board of Revenue (NBR), Bangladesh's central authority for tax administration. The event, a one-stop destination for the taxpayer and the taxman, was aimed at boosting the number of Bangladeshis who pay tax.
Those who attended were given numbered tokens that were tracked on a central display board. Each token routed a visitor through a panel of tax officials who explained how to calculate the amount of tax payable on income. More than 17,560 first-time taxpayers obtained the taxpayer's identification number (TIN), a 10-digit ID. But the fair also allowed people to file tax returns. In the first four days of the event, 55,707 people filed returns, and the NRB collected taxes worth 1.17 billion taka (Dh61.7 million), said Nasiruddin Ahmed, the agency's chairman.
The end of the tax fair was meant to coincide with the expiry of a deadline for the submission of individual tax returns, but it was extended to Thursday of this week. Dr Mashiur Rahman, the economic affairs adviser to the prime minister, Sheikh Hasina Wazed, inaugurated the fair in the capital and emphasised the need for every Bangladeshi to dutifully pay tax to make the country "self-reliant" and overcome its dependence on foreign aid.
Buoyed by the rush of tax-filers, the government said it would arrange similar fairs in all major cities from next year. "The tax fair generated a very good response," says Sanjay Kathuria, the World Bank's lead country economist for Bangladesh. "Imparting education to the taxpayer is a part of the [government's] multi-pronged strategy in revamping its tax structure." In Bangladesh, as in a number of other south Asian countries, tax evasion is endemic, starving the government of revenue and retarding the pace of economic growth and social development. Tax evasion has also spawned a shadow economy, with most of the country's elite believed to be stashing away wealth in their homes or in foreign banks.
Bangladesh has only 2.7 million TIN-holders out of a population of more than 150 million. And of the small number of TIN-holders, only 757,000 remitted taxes in the past fiscal year, the NRB says. Bangladesh's tax-revenue-to-GDP ratio is 8.5 per cent, the lowest in south Asia. By comparison, Pakistan's tax-GDP ratio is reported to be 10.6 per cent and India's between 17 and 18 per cent. "Tax evasion is a serious problem in Bangladesh", resulting in huge revenue losses for the economy, says Dr AKM Matiur Rahman, an associate professor of business administration at American International University-Bangladesh (AIUB) in Dhaka. For various social and economic reasons, and because of widespread governmental corruption, many citizens "do not believe that paying taxes is a civil and social responsibility", Dr Rahman says.
People fear harassment from tax authorities and avoid them as much as possible, Dr Rahman says, but for many people, evading taxmen to prevent their hard-earned income from falling into the hands of corrupt officials is "a matter of pride". Transparency International's Annual Report 2009, its most recent, ranked Bangladesh at 139, in a tie with three other countries, out of 180 countries on the Corruption Perceptions Index.
This year's tax fair - and those in subsequent years - will use education to address rigid social attitudes against tax compliance, Dr Rahman says. "As a teacher, I find my students are averse to the idea of paying tax in their first class. By the end of the semester, their attitudes change as they understand that tax is a necessary evil in building a nation," he says. In Bangladesh's large, uneducated population, the propensity to evade taxes is compounded by the perceived difficulty of filing returns. The fair was meant to assure first-time taxpayers about the ease of filing returns.
"Many Bangladeshis thought filing tax was a lengthy, bureaucratic procedure," says Mr Kathuria. "But the fair has shown them that it is largely a hassle-free process." But the fair, while targeting the poor and the middle class, will not "induce [Bangladesh's] rich to report their income truthfully", says Faheem Haider, a political analyst in Dhaka. A veil of secrecy shrouds the financial affairs of Bangladesh's wealthy, who own most of the country's taxable assets, he says.
In a country with a self-reporting income tax system - known locally as the Self-Assessment System (SAS) - the rich are not under enough pressure to disclose their hidden wealth. "As a result, the government loses a large share of the revenue it would have gotten had it enforced its tax code," Mr Haider says. In a 2008 research paper released by the AIUB, Dr Rahman and a co-author, Sabera Yasmin, wrote: "Since wealthy people, in general, live in urban area where a least level of dodging can result [in] a huge amount of revenue losses, they mostly use SAS in filing their tax-returns. Therefore, the evasion problem is more severe in urban than that in rural even though over 80 per cent of the population live in rural areas."
Mr Ahmed said recently the ministry of finance was drafting a scheme of incentives for taxpayers in Bangladesh. But that alone may not be enough to remedy the problem. "The poor, who earn less taxable income, are left to bear the burden of the wealthy profligates of the country," Mr Haider says. Between 2005 and 2007, multinational companies trading in clothing and personal accessories, telecommunications equipment, textiles and seafood evaded taxes worth £186m (Dh1.08bn), according to a 2009 study, False Profits: Robbing the Poor to Keep the Rich Tax-free. The study was commissioned by the anti-poverty charity Christian Aid and conducted by Simon Pak, an associate professor of finance at Penn State University.
The companies also illicitly removed £600m of capital from Bangladesh between 2005 and 2007, according to Prof Pak's study. "If the duty rate is low in Bangladesh, [multinational corporations] increase the price of imported goods to fly capital from the country, and if the rate is higher they lower the price to dodge tax,"a senior central bank official told Bangladesh's Financial Express newspaper in April last year.
"Bangladesh has neither expertise nor resources to fight back such malpractice."
business@thenational.ae
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Mina Cup winners
Under 12 – Minerva Academy
Under 14 – Unam Pumas
Under 16 – Fursan Hispania
Under 18 – Madenat
A%20QUIET%20PLACE
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Four motivational quotes from Alicia's Dubai talk
“The only thing we need is to know that we have faith. Faith and hope in our own dreams. The belief that, when we keep going we’re going to find our way. That’s all we got.”
“Sometimes we try so hard to keep things inside. We try so hard to pretend it’s not really bothering us. In some ways, that hurts us more. You don’t realise how dishonest you are with yourself sometimes, but I realised that if I spoke it, I could let it go.”
“One good thing is to know you’re not the only one going through it. You’re not the only one trying to find your way, trying to find yourself, trying to find amazing energy, trying to find a light. Show all of yourself. Show every nuance. All of your magic. All of your colours. Be true to that. You can be unafraid.”
“It’s time to stop holding back. It’s time to do it on your terms. It’s time to shine in the most unbelievable way. It’s time to let go of negativity and find your tribe, find those people that lift you up, because everybody else is just in your way.”
Company%20Profile
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UAE WARRIORS RESULTS
Featherweight
Azouz Anwar (EGY) beat Marcelo Pontes (BRA)
TKO round 2
Catchweight 90kg
Moustafa Rashid Nada (KSA) beat Imad Al Howayeck (LEB)
Split points decision
Welterweight
Gimbat Ismailov (RUS) beat Mohammed Al Khatib (JOR)
TKO round 1
Flyweight (women)
Lucie Bertaud (FRA) beat Kelig Pinson (BEL)
Unanimous points decision
Lightweight
Alexandru Chitoran (ROU) beat Regelo Enumerables Jr (PHI)
TKO round 1
Catchweight 100kg
Marc Vleiger (NED) beat Mohamed Ali (EGY)
Rear neck choke round 1
Featherweight
James Bishop (NZ) beat Mark Valerio (PHI)
TKO round 2
Welterweight
Abdelghani Saber (EGY) beat Gerson Carvalho (BRA)
TKO round 1
Middleweight
Bakhtiyar Abbasov (AZE) beat Igor Litoshik (BLR)
Unanimous points decision
Bantamweight
Fabio Mello (BRA) beat Mark Alcoba (PHI)
Unanimous points decision
Welterweight
Ahmed Labban (LEB) v Magomedsultan Magomedsultanov (RUS)
TKO round 1
Bantamweight
Trent Girdham (AUS) beat Jayson Margallo (PHI)
TKO round 3
Lightweight
Usman Nurmagomedov (RUS) beat Roman Golovinov (UKR)
TKO round 1
Middleweight
Tarek Suleiman (SYR) beat Steve Kennedy (AUS)
Submission round 2
Lightweight
Dan Moret (USA) v Anton Kuivanen (FIN)
TKO round 2
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
About Takalam
Date started: early 2020
Founders: Khawla Hammad and Inas Abu Shashieh
Based: Abu Dhabi
Sector: HealthTech and wellness
Number of staff: 4
Funding to date: Bootstrapped
HAJJAN
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APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
Killing of Qassem Suleimani
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
THE%20SPECS
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Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
COMPANY%20PROFILE
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Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
The specs
Engine: 2.9-litre twin-turbo V6
Power: 540hp at 6,500rpm
Torque: 600Nm at 2,500rpm
Transmission: Eight-speed auto
Kerb weight: 1580kg
Price: From Dh750k
On sale: via special order
Drishyam 2
Directed by: Jeethu Joseph
Starring: Mohanlal, Meena, Ansiba, Murali Gopy
Rating: 4 stars
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Oppenheimer
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Cryopreservation: A timeline
- Keyhole surgery under general anaesthetic
- Ovarian tissue surgically removed
- Tissue processed in a high-tech facility
- Tissue re-implanted at a time of the patient’s choosing
- Full hormone production regained within 4-6 months
