BD to ink double taxation avoidance pact with 32 nations

Bangladesh is going to sign the double taxation avoidance pact with 32 more countries in a bid to prevent tax evasion and capital flight, officials said.The National Board of Revenue (NBR) has already started negotiation with the governments of those countries to give a final shape of such pacts. As part of the effort, officials said, the NBR has completed formalities to sign such agreements with Morocco, Bahrain, Qatar and Bhutan.

It also concluded the first round of negotiations with Iran, Portugal, Russia, Spain, Azerbaijan, Egypt and Hong Kong to ink similar deal.The revenue board is also in touch with the governments of 15 other countries in this regard. These nations are: Algeria, Bulgaria, Czech Republic, Ethiopia, Finland, Greece, Jordan, Luxemburg, Macedonia, Nepal, Nigeria, Oman, Ukraine, South Africa and Uzbekistan.Besides, a NBR team led by its Chairman Md Nojibur Rahman is now in Thimpu to take part in the first round of negotiations for signing the double taxation avoidance pact with Bhutan. “Once such agreements are signed, they will play an important role in promoting bilateral trade and investment and curbing tax evasion and capital flight among the countries that came under the coverage of such a pact,” a senior NBR official told The New Nation on Tuesday on condition of anonymity.

Earlier, the NBR signed similar deals with the US, Canada, China, Japan, Philippines, Malaysia, Thailand, Singapore, Saudi Arabia, South Korea, UAE, Kuwait, Vietnam, UK, Sweden, Romania, France, Germany, the Netherlands, Italy, Denmark, Norway, Belgium, Poland, Turkey, Switzerland, Belarus, Mauritius, India, Nepal, Pakistan and Sri Lanka.”It’s a good move.

Such treaties will help strengthen mutual economic relations among the partner countries. It will also boost confidence of the investors and businessmen who have been operating business in the countries having such pact,” former NBR Chairman MA Mazid, told The New Nation yesterday.

He, however, said that such a pact might not be the only tool that could help curb tax evasion and capital flight from Bangladesh. “Only a concerted effort by the concerned agencies and a congenial business environment can prevent tax evasion and illegal flow of fund from the country,” he added.