The New Nation - Internet Edition

FOUR public limited commercial banks that were owned by the State until very recently and four government specialised banks reportedly owe Taka 895 crore as income tax arrears to the National Board of Revenue (NBR). According to sources close to the NBR, these financial institutions of the government have not been paying income tax since the 1986-87 fiscal year. Before this, Bangladesh Petroleum Corporation also owed to the NBR Tk 1,300 crore, which the revenue administration realised through budgetary provision in the last fiscal year. It is gathered that the NBR requested the Ministry of Finance to deposit the amount to the government exchequer.

That so many government institutions evaded tax payment for such long periods of time is difficult to accept. This glaringly shows how deep default culture has penetrated into the financial sector of the country. This also reveals a chronic weakness that the public administration suffers from. The hard fact is that the government had not been tough with the financial institutions under its own control. It is not clear how these financial institutions could prepare annual balance sheets and close accounts without making mention of their income tax. Audit firms along with the administration of the concerned bodies should be made answerable for such violation of laws.

Government bodies are supposed to be the first institutions to abide by the laws. The practice of breaking legal barriers is a crime. Violation of law by the public bodies is sure to encourage others at the private level to do the same. Without establishment of discipline at the public level, it is difficult to bring order at the private level.