Foreign workers in Bangladesh

The question of alleged tax evasion by foreigners is now a priority area for the National Board of Revenue (NBR). This is not a new issue. The NBR has concluded that since many foreigners are working in the country without valid work permits, it brings forth the question of possible tax evasion. Given that revenue collection by NBR forms a cornerstone of the current budget, it stands to reason that vigilance is tightened in this area. Of course, for any tangible changes to take place, field offices at district level will have to become much more proactive.
The law requires foreign nationals to pay 25 percent tax on their incomes. Indeed, going by what has been proposed in the Finance Bill 2014, that threshold is slated to rise up to 30 percent in the current fiscal. The problems associated with proper collection of taxes revolve around under-reporting of income and the lack of proper enforcement of tax rules. What is known is that the country presently hosts some 200,000 foreigners and the bulk of them are involved with the RMG sector. Substantial numbers of foreigners also work in the services sector.
Yet no exact figure exists with the government as to how many foreigners are working in the country which is hindering in NBR's assessment efforts. That is an issue that requires greater attention. It has become imperative that the government appoint a single authority to deal with the issuance of work permits to foreign nationals in the country.