Top Doctors Also Leading in Tax Evasion

Bangladesh, a nation of over 170 million people, has about 150,000 doctors. That means there is one doctor for every 1,200 people. Naturally, hospitals and private chambers are always crowded with patients. However, doctors do not usually offer free treatment for the poor; instead, consultation fees and unnecessary medical tests often cost a lot.

Reports in various media outlets reveal that some hospitals and doctors even refuse to release a patient’s body if bills remain unpaid. Many physicians have turned this noble profession into a money-making business. Despite earning huge amounts, many doctors evade taxes by concealing income and assets.

Some pay the due tax with penalties after being caught, but most remain beyond reach. Media investigations found that at least 10,000 doctors evade around Tk 6,250 crore in taxes annually despite having high incomes.

Data shows Bangladeshis spend about Tk 77,000 crore yearly on healthcare — mainly on hospitals, doctors, and medicines — with much of it going into the pockets of top physicians. While they live in luxury, they are miserly about paying taxes. If the government received this tax, it would reduce dependence on foreign loans for development.

Government records and independent investigations revealed widespread irregularities. A month-long probe focused on two top doctors in Dhaka: Professor Dr. Kazi Deen Mohammad, a pioneer in neuro medicine, and Professor Dr. A. K. M. Musa, Head of Medicine at BIRDEM Hospital.

Dr. Deen Mohammad, a taxpayer under Zone-23, declared an annual income of Tk 7.48 lakh and assets worth Tk 56.9 lakh for FY 2023–24, and Tk 7.55 lakh income with Tk 62.87 lakh in assets for FY 2024–25. However, investigations found his chamber always overcrowded, with patient visits from 4 p.m. till late at night.

He attends patients five days a week, excluding Fridays and Saturdays. Seeing at least 50 patients daily with a Tk 1,500 fee per patient, his daily income reaches Tk 75,000. With 22 working days per month, that’s Tk 16.5 lakh monthly — about Tk 1.5 crore yearly from consultations alone. Including hospital admissions, surgery commissions, and pharmaceutical benefits, his actual income reaches Tk 3 crore annually — all undeclared.

Repeated attempts to contact him went unanswered.

Meanwhile, Dr. A. K. M. Musa, a taxpayer under Zone-10, declared Tk 32.35 lakh income and Tk 4.12 crore in assets for FY 2023–24, and Tk 46.04 lakh income with Tk 4.41 crore in assets for FY 2024–25.

Yet investigations found long queues outside his chamber early in the morning. At Alok Healthcare, he sees about 35 patients daily, earning around Tk 38,500 per day (70% of which he keeps). At Labaid Hospital, he earns another Tk 23,000 daily, keeping 70% again. Combined, his daily income totals Tk 43,050 — roughly Tk 1.29 crore annually from consultations alone.

He also earns commissions from lab tests and benefits from pharmaceutical companies, pushing undeclared income to over Tk 2 crore yearly. When contacted, he said, “I’m seeing patients, call later,” and then blocked the reporter’s number.

Tax law mandates disclosure of all income sources — salary, consultation fees, allowances, and bonuses. But both these doctors underreported about Tk 5 crore annually. At 25% tax, the government lost Tk 1.25 crore in revenue per year.

Across five years, they evaded an estimated Tk 6.25 crore in taxes. Bangladesh currently has 141,999 registered doctors — most of whom underreport their income.

Tax officials say around 10,000 doctors earning over Tk 1 crore annually evade an estimated Tk 6,250 crore in taxes each year, totaling Tk 31,250 crore over five years — enough to fund a new metro rail project.

Under the 2023 Income Tax Act, concealing income or providing false statements is punishable by up to five years in prison or fines. Officials admit that doctors mostly deal in cash, making audits difficult.

Tax authority member G. M. Abul Kalam Kaykobad said, “We’ve instructed all tax commissioners to act on this issue. Intelligence and Investigation Cells have been formed in every zone.”

Meanwhile, Dr. Pran Gopal Dutta, a renowned ENT specialist and Freedom Award recipient, was also caught evading tax. He hid information on fixed deposits and later paid Tk 1.72 crore after the tax authorities’ investigation.

In FY 2025–26, the NBR set a revenue target of Tk 4.99 lakh crore, including Tk 1.82 lakh crore from income tax. In the first three months, revenue fell short by Tk 9,000 crore — Tk 6,541 crore from the income tax segment alone.

CPD Senior Research Associate Tamim Ahmed said, “Everyone should act responsibly about taxes. Weak oversight encourages evasion. Concealing income is a criminal offense — punishing a few examples could prevent others from doing the same.”

khaborwala/TSN