District Commissioners (DCs) have been directed to bring affluent businessmen and doctors in districts, upazilas, and rural areas under the tax net, Finance Adviser Dr. Salehuddin Ahmed said on Monday (Feb 17).

He said that measures are being introduced to ensure that all doctors and lawyers issue receipts or use digital payment methods for their fees, facilitating tax collection.

He disclosed the matter while speaking to reporters after the second working session of the Finance Department, Internal Resources Department, Financial Institutions Department, Economic Relations Department, and the Ministry of Science and Technology.

The session was part of the ongoing three-day DC Conference at the Osmani Memorial Auditorium in the capital.

Dr. Ahmed said, "Even the DCs pointed out that many rural businessmen earn substantial incomes but remain outside the tax system. The National Board of Revenue (NBR) has been instructed to take action. Expanding the tax net is crucial, as there are already calls to lower VAT and taxes."

He also said that Bangladesh has between 500,000 to 600,000 industrial establishments, yet only 50,000 contribute to tax revenue. Increasing the tax base without raising tax rates will help boost revenue collection while keeping VAT and taxes at manageable levels.

According to Dr. Ahmed, doctors and lawyers often conduct direct cash transactions, making tax enforcement difficult. 

"People rarely receive receipts for medical fees. If payments are made digitally, there will be a record. This is standard practice abroad," he added.

Regarding taxation on doctors, he noted that their assistants often handle payments but fail to provide receipts. "Doctors should ensure proper receipts are issued. Currently, few do so," he said.

Dr. Ahmed also stressed the need to boost employment at the local level, drawing parallels with China, where rural industries contribute significantly to global supply chains. "Products from remote Chinese villages reach major international retailers like Walmart. In Bangladesh, communication gaps hinder such progress, preventing balanced development," he observed.

He reiterated that the success of government policies depends on skilled and efficient field-level officers. "When field officers are competent and dedicated, public services become truly effective," he said.

BDST: 1230 HRS, FEB 17, 2025
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