[ALOCHONA] Re: Feeble explanation from Yunus' / New Age 16/12/10

Dear Mr Ejajur

In response to your comments:

Though we are not economist we understand a little bit about tax evasion and tax avoidance. As a 'Paid' executive of Grammen Bank, Dr Yunus has every right to look after the 'wellbeing' of his company. He can use every legitimate way to reduce the tax as many of us do. But then he should not play the role of 'IDOL'. He is just another executive of a profit generating corporation and should stop teaching us about Patriotism. 

Gr Bank is not a charity. It is doing business; taking interest from people some times at a very high/controversial rate. If it is earning money it has to pay taxes as many of general public do. 

It is also enjoying an unprecedented Tax holiday for long.

Regarding NGOs developmental works and its impact on economy, there is still controversy.

The total amount of money they received since 1972 for working in Bangladesh should have changed the lives of 'All' the people of this country which has clearly not happened. It is not that they are not contributing; they are contributing but not to the scale they claim. And Micro credit is not the answer to every thing. 

The Govt is taking interest from people after lending money through Govt owned Banks. But can you cite one example of any NGO surrendering their loan and interest when their clients have suffered a natural disaster (flood, cyclone, drought) which is often case with national banks (e..g.Krishi Bank).

NGOs are not sovereign they should be regulated and expenses audited.

My objection is with Dr Yunus's attitude towards the whole event: creating many companies and transferring funds amongst them to avoid tax and to conceal the whole thing from authority. This tax is not the money of any party Government. It is the money which belong to people of Bangladesh. 

Regards

Joy

Feeble explanation from Yunus' / New Age 16/12/10
In a letter published on Wednesday's New Age, F Islam complains about Muhammad Yunus's explanation about the transferring of funds to reduce Grameen's tax burden. To that, I have the following comments.
   Firstly, the finance ministry should hold a seminar for the leaders of the ruling party, various ministers and the citizens to explain the difference between the extremely complex concepts of tax evasion and tax avoidance.
   Secondly, it is a contradiction to say that charging interest is forbidden in Islam but that interest should be charged to cover operating expenses.
   Thirdly, it is a contradiction to object to any interest activity by a non-governmental organisation when the government itself is responsible for most interest activities. Also, it is a contradiction for NGOs to work in development but still pay tax to fund the government's development activities and it's a contradiction to tax interest income on donor funds when that income is also used for development activities.
   Also, it is a contradiction for the government to penalise NGOs when their very existence arises from the failure of the government to meet the needs of the people.
   Finally, it is contradictory to demand an investigation into the tax affairs of NGOs without asking for an investigation into the tax affairs of any politician in Bangladesh. It is highly irregular for people to object to this transaction and yet have no objection to the appalling manner in which Grameen and Muhammad Yunus have been slandered by the ruling party.
   Ezajur Rahman
   Kuwait

 

Feeble explanation from Yunus / New Age 15/12/10
Muhammad Yunus's explanation about the money transfer to another NGO under his direct control to evade tax is highly irregular. Tax is collected from a person or organisation for the benefit of the country and for its development. I believe there shouldn't be any profit motive by any organisation believed to be running for the benefit of the poor. The charging of interest to extract money from poor is not allowed in our religion. The interest should be charged only to recover the running cost of the process of the lending operation.
   F Islam
   Dhaka

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