No tax fair, online return submission this year
Individual taxpayers will have to submit their income tax returns at tax offices this year as the National Board of Revenue (NBR) has decided against holding its annual tax fair to avoid mass gatherings and curb the risk of the spread of coronavirus, said officials.
The decision has raised concerns among taxpayers over whether they would face hassles at the tax offices instead of the instant service they typically get at the fair, which usually takes place in November.
Despite its lack of user-friendliness, the online returns filing system is being preferred by some taxpayers this year amid the pandemic. However, the digital tax filing system has not been updated, for which it is not ready for taxpayers, said officials.
Taxmen, however, said they were preparing to create a taxpayer-friendly atmosphere at field offices so that individuals could file their wealth and annual income statements without hassle.
"We will provide all the services to taxpayers in a fair-styled environment," said Motaher Hossain, commissioner of tax zone-11.
The field office of tax has already sent messages to the taxpayers to submit returns. It is also preparing to establish makeshift booths to receive returns from taxpayers and provide acknowledgement receipts instantly, he said.
Top officials of some tax zones also have similar plans as the NBR already directed field offices to provide "visible and exceptional" services to create a festive mood among taxpayers.
It also asked field offices to set up booths in open spaces such as parking lotsto accept tax returns and provide services from the first day of November.
Even after all this, Md Ariful Islam could not dispel apprehensions over facing hassles.
Up until last year, the banker has always prepared all the tax returns of his family members who work for various organisations.
He used to afterwards submit those files at booths of respective tax zones at the tax fair that the NBR has been organising since 2010 to receive returns and provide tax related assistance.
The idea of holding a tax fair was to motivate people into paying taxes and increasing the country's tax-GDP ratio, one of the lowest globally.
This year, Islam said he would have to go round from one tax circle to another to submit his returns and that of his family members.
"This is going to be a hassle as the option to submit returns online is not available," he said.
"My colleagues are also worried about getting acknowledgement receipts against submitted returns on the spot."
"Still, we do not get tax payment certificates without paying extra to tax offices. The question is whether we will have to visit tax offices later and pay extra to collect acknowledgement slips of submitted returns," he said.
"It would have been helpful for us if we could file returns online. But that is not possible," said Islam.
For expectant mother Lam-ya Mostaque, this is a very big problem.
Joining the Bangladesh Institute of International and Strategic Studies as a research officer two years back, she is comparatively new to submitting income tax returns.
Having heard about the hassles of submissions through tax office visits, Mostaque said she was content with her last two tax fair visits.
Despite this new concern, she now says she would somehow figure out a way.
Through last year's fair, the NBR had collected Tk 2,613 crore in taxes. Some 6.55 lakh returns were submitted while 18.63 lakh people were said to have received tax related assistance.
When it comes to online tax returns submission, 2,700 were submitted in FY 2019 whereas over 6,000 in FY 2020.
Hafiz Ahmed Murshed, member (tax management and services) of the NBR, said taxpayers would not be able file returns online this year as the system had not been updated.
The NBR also did not renew a contract with Vietnam-based vendor FPT Information System Corporation for maintenance and operation of Bangladesh Integrated Tax Administration System (Bitax).
The tax authority recently decided to go for a "technical audit" following allegations that Bitax was not a user-friendly apparatus and had failed to attain desired goals.
"We wrote to Buet (Bangladesh University of Engineering and Technology) for carrying out the job," said Murshed.
Bangladesh currently has more than 54 lakh registered taxpayer identification number (TIN) holders.
And except for certain cases, all the registered taxpayers will have to submit income statements irrespective of whether they have taxable income or not.
People who do not have taxable incomes but have to get TINs for selling land will not be required to submit tax returns, according to the NBR.
Holders of credit cards who do not have any income, such as students, are also spared from filing returns, it says.
The TIN holders will have to file returns even if they do not have any income, said a senior official of the NBR.
As almost all the taxpayers will be required to furnish returns, tax offices are also likely to see increased gatherings of people this year.
An income tax commissioner seeking to remain unnamed said it would be tough to ensure social distancing and enforce health guidelines if taxpayers come at the eleventh hour.
"We are worried too," he said.
The time for submission of income tax returns for individual taxpayers begins on July 1 and ends on November 30. Taxpayers can submit returns later too through by presenting time petitions at the respective field offices of taxes.
The commissioner said they were motivating staff and officials to ensure better services to taxpayers. "We are also issuing warnings that action will be taken if taxpayers complain of harassment," he said.
Nasiruddin Ahmed, another former chairman of the NBR, said concerns had arisen among taxpayers over whether they would get the same spontaneous and hassle-free services of tax fairs at tax offices.
But the decision to not holding the show is justified from the perspective of public health, he said, suggesting full automation of the tax system.
"The tax authority should ensure that there is no harassment. An environment of a fair should be created at tax offices," said Muhammad Abdul Mazid, a former NBR chairman.
A senior official of the NBR said the decision to not holding the tax fair has been taken because of the pandemic.
"We saw huge gatherings in fairs in the past. It would have been tough to manage the huge crowds in the fair premises and ensure social distancing if we went ahead with organising the fair," said a senior official of the NBR.
Shams Mahmud, president of the Dhaka Chamber of Commerce and Industry, said the NBR must ensure strict social distancing and public health and safety measures to ensure a safe environment for the taxpayers.
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