International companies dodge Tk 60b in tax every year

Enact laws without loopholes to prevent evasion

Tax evasion has been a problem plaguing the country for a long time. The numbers shown by a recent report of Tax Justice Network are quite disconcerting, to say the least. A huge amount of money is being transferred by multinational companies to tax havens. And it can easily be surmised that the amount of tax that is evaded can easily put forth the funds for a mega project of the country.

According to a report published in this daily, different multinational companies and individuals are dodging tax worth almost Tk 5,980 crore in Bangladesh. This amount is the figure for just one year. When considered over a number of years, this number becomes truly mind boggling. However, what is most disconcerting is that the government is yet to device a solid solution for this impeding problem.

It would be prudent to bring the 

hammer of law down on tax 

evaders as soon as possible

The report also elaborates on the share of multinational companies being Tk 5,730 crore and the share of individuals being Tk 250 crore. The evaded tax amounts to 3.5 percent of the total tax of the country. Even if the percentage is small the amount in no way can be considered as such. When hundred and thousands of crores of dollars are being evaded from the government tax, it means that there is a great amount of money being deprived of the people.

According to expert opinion, to evade taxes from Bangladesh, profits and assets can be transferred to different tax havens. This trend cannot be stopped only by transfer pricing law. Adequate data needs to be collected to prevent this. Also the government should focus on coming to a resolution considering the money that would come to the use of millions.

Above all, the authorities concerned should have been able to present the report earlier. Since there was such a delay, it would be prudent to bring the hammer of law down on tax evaders as soon as possible.