Most of 1.16cr eligible income taxpayers out of tax net

Most of the 1.16 crore people capable of paying income taxes in Bangladesh have remained out of the tax net of the National Board of Revenue (NBR), according to a senior official of the tax administration today.  

"A huge portion of the population has remained out of the tax net. So, the NBR has taken the move to increase the number of tax offices across the country in order to expand the tax net," said Mohammad Jahid Hasan, member for tax information management and services at the NBR.

Last year, only 25.30 lakh registered taxpayers out of a total of 83 lakh submitted income tax returns.

"This is not satisfactory at all," Hasan said, calling on individuals to become proactive to submit income tax returns and raise awareness among the potential taxpayers.

The NBR official made the remarks at a workshop on "Customs, VAT and Income Tax management" organised by the Dhaka Chamber of Commerce & Industry (DCCI) at its office in the capital, according to a press release.

At around 7 per cent, Bangladesh has one of the lowest tax-to-GDP ratios in the world even though it posted higher economic growth in the last decade, maintaining an average annual GDP expansion of 6.4 per cent.

Hasan said that businessmen are the partner of the NBR and the NBR is relentlessly working on reforms and modernisation of various regulations to facilitate businesses.

"The NBR is trying to ensure automation for customs, tax and VAT systems so that people can easily access the services hassle-free."

He also called for ensuring compliance in the books of accounts to reduce litigation.

DCCI President Rizwan Rahman said considering various needs and urgency, the government sometimes has to make a few changes in the finance bill, VAT and tax systems through statutory regulatory orders.

"And as an entrepreneur, a businessman has to have a clear knowledge of these issues."

DCCI Senior Vice President Arman Haque, who chaired the workshop, said there should be harmony between taxpayers and tax collectors.

He urged the NBR to widen the tax net to increase the revenue collection.

The NBR generated more than Tk 300,000 crore in the last fiscal year, which ended in June. The collection target has been set at Tk 370,000 crore for the current fiscal year.

Snehasish Barua, adviser of the DCCI's standing committee on customs, VAT and NBR, and MBM Lutful Hadee, joint convener of the committee, presented papers at the event.