Sweeping powers for taxmen

Obviously, the government must get the taxes on a regular basis. People are duty-bound to pay the taxes and evasion in this respect is a serious crime according to the law. All these are basics of tax administration. The provision for arrest of tax evaders had been there in the book, for a long time. What is new is that VAT collectors are being empowered to arrest people on the spot. But the ground reality is that there is no guarantee that there won't be any abuse of such sweeping powers. The point becomes all the more relevant when we consider the fact that there is sufficient ground to believe that the tax officials are among the most corrupt. The discretionary powers might lead to arbitrary exercise of authority. Wayward among the officials could use it as a weapon or instrument for pressurising people with undue demands. It might open another window for indulgence in bribery.

Businessmen are being subjected to strict enforcement of the law. But the question is: what steps has the government taken to streamline its tax collection system in general? People must be allowed to pay taxes without facing arbitrary demands -- that people often complain about -- on the part of the tax collectors.

Tap here to add The Daily Star as a trusted source

A holistic approach to the issue is needed, as isolated or ad hoc measures cannot bring the desired results. The tax administration must be seen as an integral part of economic governance, and it has to be developed in such a way that would leave little room for tax evasion, bribery or malpractice of any other kind. Enforcing the law is a vital part of it, but other relevant aspects can hardly be ignored.