The National Board of Revenue (NBR) is on an earnest drive to expand the tax net in the coming days, aiming to improve the tax-GDP ratio, a key figure as it relates to a variety of forthcoming economic matters for the country.
The International Monetary Fund (IMF) has asked to increase the tax-GDP ratio to 7.9 percent by next June - which currently languishes at 7.4 percent. Raising the ratio is related with unlocking the 3rd and 4th tranches of the $4.7 billion loan program Bangladesh entered into with the IMF in 1991.
According to the NBR, some 1.15 crore individuals have taken electronic Taxpayers Identification Number (ETIN), but only 45 lakh have submitted their income tax return, and one third claimed to have zero return.
“We have scope to expand the tax net,” NBR chairman Md Abdur Rahman Khan told a recent pre-budget meeting.
Meanwhile, the NBR through its countrywide field level offices has launched a new Spot Assessment programme to increase the tax net. Spot Assessment is an effective step to provide direct services to all taxpayers who have taxable income and are obliged to file returns. This program is encouraging new taxpayers to pay income tax spontaneously.
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Various tax zones of the country have already started this program, which is playing an important role in increasing tax awareness and building a tax paying culture among businessmen, professionals and the general public.
Currently, tax zones have actively started conducting Spot Assessment at district and upazila level of the country.
“We are getting reports regularly regarding the new taxpayers' inclusion and the revenue collection from them,” the NBR chairman said.
The NBR urged all business organisations, chambers of commerce, business leaders, local administrations, eminent persons and taxpayers of the country to provide their unwavering support and cooperation to make the ongoing Spot Assessment activity successful.
“We need support from the business leaders to know who would be the capable new taxpayers, they would encourage the other eligible business people to pay taxes and inform them of the advantages and disadvantages of paying and not paying taxes,” he said.
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The NBR hoped that spontaneous participation of taxpayers will make this activity successful and continue to invest in ongoing development projects and will directly contribute to the necessary funding to ensure the country's infrastructure development, education, health and other civic amenities.
The NBR believes that through the Spot Assessment activity, the tax payment tendency among taxpayers will increase and the tax system will be further strengthened.
A senior official of the NBR said that there is no tax day for the new taxpayers, they can enlist themselves and submit their income tac return at any time.
“There is no time bar for them, we want to encourage the new taxpayers to include them in the tax net,” he said.
Meanwhile, in a meeting held on April 7, the IMF asked the NBR to collect some Tk 2 lakh crore in the next months to meet the conditions for the last two tranches of the $4.7 billion loan.
The IMF has suspended the disbursement of the third and fourth tranches of its $4.7 billion loan package to Bangladesh, citing non-compliance with key reform conditions.
The decision follows a review of the country’s macroeconomic indicators and structural performance benchmarks under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements.