Businesses do want to pay their taxes, albeit through a process free from difficulties and harassment by revenue officials, Mahbubul Alam, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said yesterday.

Businesses are usually compliant with the country's tax regime but decide against paying taxes whenever they face trouble in the revenue collection process, he said.

"We want the opportunity to pay taxes without facing any harassment," he told a ceremony organised by the National Board of Revenue (NBR) at its Dhaka headquarters.

Held in observance of VAT Day, the event honoured nine companies for depositing the highest amount of value added tax (VAT) to state coffers from their respective sectors in fiscal year 2020-21.

One or two percent of businesspeople are able to hide their incomes but they will stop doing so if the tax collection process is automated and compliance with regulations is made easy, said Alam.

He also urged expanding the tax net with a special focus on upazila levels.

A massive number of products get VAT exemptions, which is why the tax-GDP ratio has not reached a satisfactory level, said Zakia Sultana, member of the NBR (VAT policy), while presenting a keynote paper.

Moreover, VAT evasion takes place on a significant scale, she said, recommending that the NBR raise its administrative spending behind revenue collection as it amounted to just 0.19 percent of the tax collected.

Businesspeople involved in trading onions sacrificed their morality simply to rake in more profits, said Commerce Secretary Tapan Kanti Ghosh regarding a recent spike in the vegetable's price after India banned its export.

Prices increased by Tk 100 or more per kilogramme overnight as traders began stockpiling the vegetable after India on Thursday banned onion exports till March next year to increase availability and keep prices in check in its domestic market.

"Many traders take advantage of the crisis of essential commodities. This is not responsible behaviour. Businesspeople need to understand that business is for the people of the country," said Ghosh.

Addressing the session as the special guest, Finance Secretary Md Khairuzzaman Mozumder welcomed a rise in the collection of VAT and income tax compared to customs duties.

He said the recommendation for raising the NBR's spending behind revenue collection would be considered.

NBR Chairman Abu Hena Md Rahmatul Muneem and other members also spoke at the event.

HIGHEST VAT DEPOSITS

From the services sector, bKash, Nagad and Aarong were awarded by the NBR with the aim of encouraging businesses to properly deposit the indirect tax paid by the consumers to state coffers.

Olympic Industries Limited, UniMed UniHealth Pharmaceuticals Ltd and General Pharmaceutical Ltd won awards from the manufacturing sector while Walton Plaza, Unimart Ltd and HAMKO Corporation Ltd won from the trading sector.