National Board of Revenue
NBR’s three-pronged strategy to boost revenue collection
Aiming to significantly boost revenue collection from domestic sources, the National Board of Revenue (NBR) is adopting a three-pronged approach.
These are: digital transformation, expansion of tax net, and enhancing administrative capacity.
The core idea is to make tax payments easy and transparent to improve taxpayer services which in turn will help NBR to collect more revenue, according to an official document.
According to the Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26) of the Finance Division of Finance Ministry, the government has taken some Major reform measures to materialise the move.
The VAT & Supplementary Duty Act 2012 has been implemented in July 2019. With the implementation of the new act, the collection of VAT and supplementary duty is expected to receive a significant boost in the medium term. After the initial hiccup and the shortfall due to the outbreak of COVID-19, revenue collection accelerated in FY22.
The government has enacted the new Customs Act, which replaced the Customs Act 1969. International best practices in customs, including that of the World Customs Organization (WCO), the revised KYOTO Convention and the WTO Trade Facilitation Agreement have been incorporated here.
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The law aims to harmonise and simplify customs processes to facilitate the collection of custom duties.
The new Income Tax Act is also expected to create an enabling environment for taxpayers, streamline income tax assessment and collection, and facilitate domestic and foreign investment.
To implement the new VAT law, the NBR undertook the ‘VAT Online Project (VoP)’ which was in operation since 2013 and concluded in June 2021.
Under the VOP, the official document said that the three important automation measures have been completed. First, the Online VAT Registration began in March 2017. Again, the central registration system has been in force since July 2019. The NBR has introduced online return submission in July 2019. The digital filing system has been introduced in the form of online submission of VAT returns.
The NBR has rolled out the electronic payment (e-payment) of customs duties in 2017, income tax in 2012 and VAT in 2020. Income tax can be paid through MFS (mobile financial services) as well.
To facilitate real-time deposit of government money to the national exchequer, the government has launched the Automated Invoice Portal. This Automated Challan (also known as A-Challan) will act as the receipt window of the government. The payment of income tax has already been brought under the A-Challan system on a pilot basis.
The NBR now plans to expand its use for payment of VAT and customs duties. The A-Challan will ensure the timely deposit of money including the prevention of fake return submission and revenue evasion.Moreover, the discrepancy between the amount of revenue collected by the NBR and the accounts given by the Accounting Offices will be eliminated.
The Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26) said that individual taxpayers can now submit their tax returns online.
NBR extends deadline for filing companies’ tax returns to April 30
The NBR has successfully launched eTDS Environment for easy and hassle-free processing of income tax at the source. With the introduction of this system, taxpayers’ time, cost and visits have been reduced to almost zero. Taxpayers can now submit fourteen reports in the eTDS environment.
To stop evasion in VAT and enhance VAT collection, the government has introduced Electronic Fiscal Devices (EFD) with a sales data controller mechanism.
The government has already installed 9270 EFD/SDC (Sales Data Controller) machines. NBR has selected 24 sectors, including residential hotels, bakeries and fast foods, decorators and caterers, sweet shops etc. for this purpose.
To broaden the coverage, the government has decided to outsource the installation of EFD/ SDC machines with a target of 60,000 EFD/ SDC in the first phase and 3,00,000 in five years, if the first phase brings good results.
Besides, to prevent tax evasion and to bring transparency in VAT record keeping, the government has made the use of NBR-prescribed VAT software mandatory in VAT-registered industries with annual turnovers of Tk 5 crore or above.
The NBR has made provisions to enable internet-based companies, such as Google, Facebook, Microsoft etc. to pay their VAT on online sales.
This allows these companies to pay their VAT through their authorised VAT agents without opening their office in Bangladesh.
The NBR plans to operationalise the risk management system to ensure that no more than 10 percent of the import consignments are subject to physical examination. To that end, the NBR has established a Central Risk Management Unit/Commissionerate for Customs.
To streamline the bonded warehousing system, reduce its misuse and make it transparent, the government has taken a project that aims to automate the bond management system by June 2023. Meanwhile, the licensing module has started operation and other modules will become operational soon.
Bangladesh Customs will soon be conducting a Time Release Study in the major custom houses to take stock of the actual time taken in the release of imported consignments. The objective of the TRS will be to identify bottlenecks in customs clearance and to take measures to reduce clearance time.
The NBR strives to expand the number of taxpayers and has made the return submission mandatory for all TIN-holders with a few exceptions.
Other reform efforts by the NBR included – i) implementation and activation of Online National Single Window, Post Clearance Audit, Advance Ruling, Authorised Economic Operator, and thereby increasing dynamism in international trade; ii) full implementation of online income tax return submission under SGMP project; iii) implementation of “Individual Source Tax Deduction Monitoring Zone” to strengthen income tax deduction monitoring; iv) expansion of the e-Payment system in income tax; v) activation of transfer pricing and anti-money laundering activities; and vi) strengthening ICT infrastructure construction and automation activities.
Administrative expansion of the income tax department is underway, the Medium Term Macroeconomic Policy Statement added.
Introduction of the Document Verification System (DVS) has brought financial discipline and positively contributed to boosting tax collection both in income tax and VAT by increasing transparency.
NBR collects nearly Tk 2 lakh crore in 7 months, growth over 15%
Bangladesh Economic Association proposes 70 percent tax on cigarettes, tobacco
The Bangladesh Economic Association (BEA) has proposed a 70 percent tax on all types of cigarettes and tobacco in the next budget.
The association reckons that doing so will reduce smoking by about 66 percent, alongside generating revenue of Tk1,700 crore for state coffers.
The proposal was submitted to the National Board of Revenue (NBR) during the pre-budget discussion held at the NBR Building on Sunday (February 18).
The General Secretary of the BEA Professor Dr. Md. Aynul Islam presented the budget proposal. Vice President of the association Professor Hannana Begum was present.
Read more: Govt cut VAT, duty on import of 4 essential items ahead of Ramadan
According to the BEA's proposal, imposing a single supplementary duty of 70 percent on all types of cigarettes would increase the price of cigarettes by an average of 130 percent.
Smoking will be reduced by 66 percent. About 70 lakh smokers will quit smoking, and about 71 lakh young people will stop habituating to smoking. Also, the additional tax revenue of the government will be earned at least Tk1700 crores, the proposal stated.
Similarly, the BEA demanded to impose a tax of 70 percent on all types of tobacco products including smokeless tobacco such as jorda, gul, sadapata, etc.
On the other hand, in the case of bidi, if the tax is imposed at the rate of Tk 4.90 on the retail price of every 25 shalak (piece) packet, the government will be able to collect additional revenue of Tk 800 crore.
Read more: ICMAB delegation takes part in pre-budget discussion with NBR
The BEA thinks with such a tax increase; revenue earning will be raised and it would help to revive the economy from the ongoing economic crisis. The BEA has a total of 27 new sources of revenue income.
At this time, Prof Aynul said, as a method of gathering resources for the upcoming budget, no pressure can be applied on the general population, such as the poor, lower class, lower middle class, and middle class.
Due to various reasons, this class of people is now in a severe economic crisis. It would be unfair at this moment to rely completely on them as in the past for tax collection.
In that case, the imposition of additional income tax on these three groups – the super-rich, the rich, and the upper-middle class – can be considered, said Prof Aynul.
Read more: PROGGA, ATMA for imposing specific taxes on tobacco products
Govt cut VAT, duty on import of 4 essential items ahead of Ramadan
The government has reduced VAT and duty on import of rice, edible oil, sugar, and dates ahead of holy month of Ramadan.
The National Board of Revenue (NBR) issued four gazette notifications reducing the customs duties on these essential items from a minimum of 5 percent to a maximum of 47 percent.
According to the notifications, rice import duty and tax have been reduced by 47.25 percent. The duty has been reduced from 62.50 percent to 15.25 percent. Out of this, supplementary duty has been cut by 20 percent.
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This tax reduction will be applicablein the import of boiled and non-boiled rice.
However, prior to importing rice at subsidized rates, written approval must be taken from an official of minimum joint secretary rank of the Ministry of Food for each shipment. The tax reduction facility will be valid till May 15, 2024.
On the other hand, the Value Added Tax on refined and crude (non-refined) soybean and palm oil has been reduced to 10 percent from 15 percent, which will be in force till April 15.
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For sugar import, the fixed duty has been reduced from Tk 1,500 to Tk 1,000 per metric ton. This facility will be valid till March 31 as per NBR notification.
Besides, the import duty on date has been reduced from 58 percent to 43 percent.. It will remain in force till March 30.
One crore TCB card holder families to get 5 kg rice at Tk 30 from July
In the cabinet meeting held at the Prime Minister's office on January 29, Prime Minister Sheikh Hasina ordered reduction of duty on edible oil, sugar, dates, and rice on the occasion of Ramadan.
On January 22, the Ministry of Commerce wrote to National Board of Revenue (NBR) to exempt tax on rice, edible oil, sugar, and dates.
FBCCI urges NBR to extend tax return submission deadline till Dec 31
The Federation of Bangladesh Chamber of Commerce and Industry (FBCCI), the apex organization of businessmen, has requested the National Board of Revenue (NBR) to extend the deadline for submission of income tax returns.
The federation in a letter to the NBR Chairman said that due to the late publication of income tax circulars in line with the new Income Tax Act 2023, the businessmen are not prepared to submit returns.
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So, the deadline for filing returns need be extended until December 31 this year.
The letter said due to the current political situation and upcoming parliamentary elections, many taxpayers may be able to file income tax returns by November 30.
Some other business chambers have also requested the NBR to extend the tax return submission deadline.
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The Dhaka Taxes Bar Association has demanded an extension of the return submission deadline by another two months.
SC orders GP, Robi, Banglalink to pay Tk 2500 crore
The Appellate Division of the Supreme Court on Tuesday ordered Grameenphone , Robi and Banglalink to pay dues of Tk 2500 crore as their spectrum acquisition fee including VAT to the government, National Board of Revenue and Bangladesh Telecommunication and Regulatory Commission (BTRC).
A five-member bench of the Appellate Division led by Chief Justice Hasan Foez Siddique passed the order after rejecting their petition challenging the High Court order that had rejected their writ petition against imposing VAT (value added tax) on spectrum acquisition fee.
Read more: Mobile operators must increase spectrum by December to provide better services to customers
Of the total amount, Grameenphone has been asked to pay Tk 1,400 crore, Robi Tk 500 crore and Banglalink Tk 650 crore.
Attorney General AM Amin Uddin represented the state while Barrister Reza-e-Rakib and Barrister Mostafizur Rahman Khan stood for BTRC and mobile companies, respectively.
Talking to reporters, Attorney General Amin said the government has allocated spectrum for the three mobile operators and fixed charges on it. VAT (value added tax) was also added later by the government on the spectrum fee.
The three mobile operators filed a writ petition challenging the VAT which was rejected by the High Court.
Read more: BTRC's spectrum auction: Govt earns revenue of Tk 10,645 crore
Later, they filed petitions to the Appellate Division of the Supreme Court challenging the High court order which was also rejected, he said.
Now, NBR and BTRC will realise the money as dues including charges and VAT from the three mobile operators.
BAT Bangladesh keeps topping NBR honours chart
The National Board of Revenue (NBR) Wednesday honoured British American Tobacco (BAT) Bangladesh with the highest income taxpayer award in the others (company) category for 2021-22 fiscal.
The company earned recognition for nine successive years.
NBR conferred the award to BAT Bangladesh during an event in Dhaka; Finance Minister AHM Mustafa Kamal was the chief guest.
Golam Mainuddin, chairman of BAT Bangladesh, received the award.
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"We are humbled to receive the highest taxpayer award again, and as always, we feel proud to have contributed to the development of the country's economy as we sincerely believe the contribution to the national exchequer plays a crucial role in keeping the wheels of the economy running and an essential part of the country's growth journey," Mainuddin said.
During the aforementioned fiscal year, BAT Bangladesh contributed approximately Tk28,280 crore to the government exchequer through VAT, supplementary duty, income tax, and other means, the multinational corporation said.
Grameenphone scores highest taxpayer award in telecom sector for 7th time
Grameenphone has been honoured as the highest taxpayer for 2021-22 fiscal in the telecommunication sector.
The telecom operator attained the recognition for seven fiscal years in a row.
The National Board of Revenue (NBR) conferred the award to Grameenphone during an event Wednesday in Dhaka. Finance Minister AHM Mustafa Kamal was the chief guest at the event.
Yasir Azman, CEO of Grameenphone, received the award.
"During FY22, Grameenphone contributed to the national exchequer as a direct tax of Tk2,490 crore and withholding tax of Tk1,158 crores. Since its inception till September 2022, the total contribution of Grameenphone to the national exchequer is Tk103,497 crores, which includes a contribution to NBR of Tk72,086 crore as direct and indirect tax, withholding tax of Tk11,107 crore, and contribution to the Bangladesh Telecommunication Regulatory Commission (BTRC) of Tk20,305 crore," the operator said.
"Since the ban on Grameenphone's SIM sales in June 2022, the country's telecom sector has been witnessing an overall decline – from recording a total of 184.45 million subscribers in June to 181.67 million in October."
Read more: Q3 2022: Grameenphone reports 6% revenue growth despite ban on SIM sales
"Besides directly hampering the telecom sector, this embargo is also said to have been affecting the company's stock market investors and the country's general image to attract prospective FDIs. NBR is also losing revenue from corporate tax and indirect tax, which includes SIM tax of Tk200 per new customer. Also, BTRC is losing 6.5 percent of Grameenphone's revenue from new customers," the operator added.
Yasir said: "We are grateful to NBR for honouring us with the highest taxpayer award in the telecommunication sector for the seventh consecutive time. Unfortunately, on this very auspicious day, we are unable to serve new customers despite meeting QoS benchmarks set by the regulator."
"We believe this will have an adverse effect on the overall economic development of the country, not only because NBR will lose out on tax revenues but also due to its impact on all other sectors which rely on connectivity and digital solutions. It is important that authorities withdraw the SIM sales ban immediately as this is a counter-productive move towards tax revenues and Smart Bangladesh."
Read more: Grameenphone reports 5.2% revenue growth in 1st half
FY22: Walton Plaza scoops up highest VAT payer award in business category
The National Board of Revenue (NBR) has declared Walton Plaza the highest value added tax (VAT)-paying company in 2021-2022 fiscal in the business category.
Walton Plaza and eight other businesses at the national level and 120 enterprises at the district level were honoured with the best VAT payer award at a National VAT Day programme at a city hotel Saturday.
Finance Minister AHM Mustafa Kamal attended the programme as the chief guest. Federation of Bangladesh Chambers of Commerce and Industries President Md Jasim Uddin was also present as a special guest. NBR Chairman Abu Hena Md. Rahmatul Munim presided over the function.
At the event, Walton Plaza's Chief Executive Officer (CEO) Mohammad Rayhan received the highest VAT payer crest and certificate from Mustafa Kamal.
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Every year, the NBR awards the highest VAT-paying companies to encourage them.
Walton Plaza has received the highest VAT payer award either at the national or district level every year, said the company.
NBR collects Tk 90901.99cr revenue in 4 months, against target of Tk 97306.86cr
Bangladesh's National Board of Revenue (NBR) has collected Tk 90901.99 crore in the July-October period of the current fiscal year (2022-23), against the target of Tk 97306.86 crore.
According to NBR’s latest data, revenue collection has grown by 14.17 percent on average so far in October, compared to last fiscal year (FY 22).
In the fiscal year 2021-2022, the revenue collected in July-October was Tk 79622.66 crore.
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Though the revenue collection target saw a shortfall of Tk 6404.87 crore, the overall revenue collected in the July-October period is encouraging for the revenue board, said an NBR member today.
He said that the negative impact of the global economy has also hit Bangladesh. Despite various crises, NBR’s revenue collection has been satisfactory so far, the official said.
In the current fiscal year of Bangladesh (July 2022 - June 2023), NBR’s revenue collection target has been set at Tk 3.70 lakh crore.
Read more: Revenue collection down by 13% in Q1, reaching target a challenge
Filing of tax returns: November declared as service month
The National Board of Revenue (NBR) has announced November as the tax service month in a bid to facilitate the submission of tax returns for the year 2022-23.
Each of the income tax zones will provide services to taxpayers from November 1 to 30.
NBR Chairman Abu Hena Md Rahmatul Muneem made the announcement at a media briefing at the NBR office in Segunbagicha on Tuesday (November 01, 2022).
Read more: How to file your Tax Returns in Bangladesh
He said thirty-one tax zones with a total of 649 tax circles will receive income tax returns of their respective taxpayers until November 30 in a festive environment as part of the tax service month.
The website of each tax zone will contain various income tax-related forms, circulars, return filing guidelines, video tutorials, and other necessary information to help the taxpayers.
Under the management of Tax Zone-4, Dhaka, by setting up return acceptance booths and help desks at Bangladesh Secretariat and Officers Club Dhaka from November 1-14. The tax information will provide the same for five days on November 20-24 at the Planning Commission.
Read more: Tax return document not needed for loans up to Tk 20 lakh: NBR
For the Armed Forces, the tax zone would facilitate tax return submission and tax information services at Sena Malancha of Dhaka Cantonment on November 9-10.
An online income tax return filing system is also effective. Taxpayers can register in the system, can prepare returns, and submit. Taxpayers can file returns online by taking advice about e-return through hotline number 09612717171, said NBR.
New taxpayers can register, and existing taxpayers can re-register subject to providing the necessary information at the registration booth.
Read More: NBR counting losses for rampant tax evasion
Implementation of the e-TDS system is ongoing in all taxing jurisdictional authorities at the source. Taxpayers will be given Income Tax Returns, TIN applications, and Challan forms.
Taxpayers in Bangladesh can pay income tax online through e-payment.
In the last fiscal year, only 27 percent of taxpayers filed their yearly tax returns within the deadline of 30 November, which was extended by another month by the NBR.
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According to NBR data, it received Tk2456 crore income tax from tax returns of 18.55 lakh individuals, which is over 6 percent year-on-year rise from last year's 17.48 lakh.