The New Nation - Internet Edition

Staff Reporter

International Monetary Fund (IMF) has formulated the draft Income Tax Ordinance-2008 of Bangladesh Government this time, suggesting the latter to promulgate it.

IMF, going well beyond the norms of diplomatic nicety, has made a verbal suggestion to the Government to turn the draft Income Tax Ordinance prepared by them as a law by President's promulgation.

Once implemented, the prescribed taxation measures would help cure economic ills of Bangladesh, IMF officials learnt to have told the Government. The Government officials, however, are annoyed with such policy domination by the multinational lending agency. Competent sources in National Board of Revenue said IMF sent the draft and verbally asked the authority to make it effective from the next fiscal. "This is humiliating," said a senior official requesting anonymity.

The multinational lending agency has long been trying to make some serious changes of its choice in the fiscal policy of the government.

After getting the draft of the ordinance, NBR has formed a committee with Parsha Begum (Member), Income Tax Survey, as its head to examine the draft.

The committee had a meeting on January 2 and will hold a series of meetings, said a senior official close to the committee.

The 'fully prepared' draft ordinance made the NBR high officials annoyed as it was sent without asking for it. "It seems NBR officials do not know anything about revenue collection and formulating policy to augment the revenue," he said.

"The existing Income Tax Ordinance has been amended several times to meet the needs … IMF is trying to interfere in our internal matters," added the official.

The IMF has long been trying to separate the tax unit from the NBR, ostensibly to achieve faster revenue growth, which the Government had so far vehemently opposed.

The present government took the IMF suggestion seriously and Finance Adviser is believed to have instructed officials to go by its suggestion.