Encouraging people to submit e-return and pay income tax online, Chief Adviser Prof Muhammad Yunus on Monday said tax paid by the people is the main driver of the country's economy. “I wish, your experiences of submitting income tax return become smooth and hassle-free from now on,” he said in a message. The chief adviser also urged all to show their relatives, neighbours and friends how they too can submit their income tax online. Chief Adviser expected to join COP29 Summit in Azerbaijan next month Acknowledging that people face various hassles to pay taxes, he urged everyone to submit their e-return and pay income tax online, according to the video message shared by the Chief Adviser's Press Wing. "I request the youths to help the taxpayers to this end. Preparation of becoming future entrepreneurs can start from here. We are taking preparations to collect all taxes online gradually," he said. From now, the chief adviser said, there is no need to stand in long queues at the banks to pay income tax or go to tax offices to submit income tax return. "Submit income tax return from your home....this measure has been taken," Prof Yunus said. Submitting e-return of income tax for all government officials of Dhaka, Narayanganj and Gazipur cities, and officials and employees of all scheduled banks, mobile phone operators and multinational companies has been made mandatory now, he said. Prof Yunus also urged the rest of the eligible people of the country to submit e-return and pay income tax online. He also encouraged competition among organisations and firms in submitting e-return of their officials at district and city levels for winning the state awards.

The government of Bangladesh has set ambitious revenue collection targets for the fiscal years 2024-25 and 2025-26, aiming to gather Tk 5872 billion and Tk 7097 billion, respectively. The strategy hinges on enhancing digitalization and simplifying tax procedures for both businesses and individuals. The focus will be on direct taxes and VAT to raise more revenue. In addition to expanding the tax net and increasing the capacity of tax officials, exercises will be carried out to rationalise the current culture of widespread tax exemptions and to bring in heightened transparency in the budgetary discourse. As per the Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26) of the Finance Division of Finance Ministry, some Tk 5343 billion will come from the tax revenue sector in 2024-25 fiscal and Tk 6463 billion in 2025-26. In the next two fiscal years, the National Board of Revenue (NBR) will provide Tk 5095 billion and Tk 6171 billion. From the Income Tax wing, the projected collection will be Tk 1753 billion for the next fiscal, and Tk 2123 billion for 2025-26 fiscal. Collection from the import duties will be Tk 1511 billion and Tk 1830 billion respectively. Tk 16.8cr in 4 days: AL revenues from nomination forms outpace toll collection from megaprojects From VAT and Supplementary Duties, the revenue collection will be Tk 1831 billion and Tk 2218 billion respectively. The non-NBR tax for 2024-25 and 2025-26 will be Tk 248 billion and Tk 292 billion respectively. Non-tax revenue collection will be Tk 529 billion and Tk 634 billion respectively. The target for the running 2023-24 fiscal is Tk 5000 billion with Tk 4500 billion from tax revenue. Of the total amount, Tk 4300 billion will come from NBR through Tk 1480 billion from income tax, Tk 1275 billion from import duties, Tk 1545 billion from VAT and Supplementary duties. Some Tk 200 billion will be collected from the non-NBR sector while Tk 500 billion from non-tax revenue sector. According to the Medium Term Macroeconomic Policy Statement, revenue outturns estimated for 2023-24 and projection for the next two years show high elasticity and buoyancy, implying robustness in revenue mobilisation in the medium term. It mentions that among the tax and non-tax parts of the revenue, the tax revenue is forecasted to be more buoyant and elastic than the non-tax part. Read more: Tax automation would generate more revenue collection: DCCI President The elasticity data shows that the overall revenue is projected to grow 1.65 times higher than the nominal GDP in FY 2025-26. As per the statement, the revenue elasticity of GDP for the 2023-24 fiscal is 1.28 times higher than the last fiscal while it is projected to be 1.40 times higher in the next 2024-25 fiscal year. The tax revenue elasticity of GDP will be 1.33 times higher in the current fiscal while it will be 1.50 times higher in the next fiscal and 1.66 times higher in 2025-26 fiscal year. The non-tax revenue elasticity of GDP for the running fiscal will be 0.92 times higher in the current fiscal, 0.47 times higher in the next fiscal year, and 1.57 times higher in 2025-26 fiscal year. On the other hand, the buoyancy indicates that, in FY 2025-26 the tax revenue in real terms may grow 98 percent higher than the growth of real GDP. The Policy Statement mentions that the revenue mobilisation acts as a catalyst to achieve the development outcomes of a country. Bangladesh has envisioned its long-term development trajectory to be a higher middle-income country in 2031 and to be a developed country in 2041. Read more: Increase revenue, quality of services at airports: Faruk Khan tells CAAB In addition to these aspirations, the ‘Perspective Plan of Bangladesh 2021-2041’ has targeted to raise the revenue- GDP ratio to 19.55 percent by 2031 and to reach 24 percent by 2041. The statement says that the spectacular growth Bangladesh registered in the last decades, however, has not been underpinned by concomitant revenue growth. A large share of the revenue comes from the direct (income tax) and indirect taxes (VAT and customs) collected by the National Board of Revenue (NBR). Non-NBR taxes and Non-Tax Revenue (NTR) consists of smaller parts. It said that there is a need to identify the reasons for low revenue collection to move onto the essential next step to correct the course. It is important to understand various issues such as the economic structure (large informality and exemptions), structural weaknesses (complicated processes and information asymmetry), and cultural factors (apathy towards paying taxes) that contribute to significant underperformance in revenue collection. The government, the policy statement said, with the support of private sector operators, is keen to make paying taxes easy, tax rules easy to understand and rationalise tax exemptions. Success in revenue collection will be strengthened by making the tax administration easy to approach, increasing digitalization to bring in transparency and predictability and bringing in progressivity in taxation where rich people pay a higher part of the taxes, it added. Revenue collection up by 14.36 percent in July-October, but behind target: NBR

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

The citizens of Bangladesh can register for Tax Identification Number (TIN) for paying income tax and various other purposes. They can also deactivate TIN when it is not required anymore. TIN can be deactivated upon fulfilling some terms. Let’s take a look into the process of deactivating TIN in Bangladesh. What is TIN? TIN is a unique alphanumeric code assigned to individuals and businesses by the National Board of Revenue (NBR). It serves as an essential identification and tracking system for tax purposes. The TIN helps the government maintain accurate records, monitor taxpayer compliance, and facilitate efficient tax collection. Whether you are an employee, self-employed professional, or business owner, obtaining a TIN is crucial for fulfilling your tax obligations. Read more: Universal Pension Probash Scheme: Registration Process for Expatriate Bangladeshis TIN Certificate Deactivation Terms Government Announced TIN Certificate Deactivation Terms The Bangladesh government has recently established six conditions for applying for the cancellation of TIN registration. i. Those who are not obligated to file tax returns. ii. Cessation of existence due to death, dissolution, extinction, or similar circumstances. iii. Permanent departure from Bangladesh with no earning activities in the country. iv. Duplicate or erroneous registration. v. Change in legal status. vi. Any other lawful reason. Read more: e-TIN: Online registration process in Bangladesh Who Can Deactivate TIN  When a taxpayer's income falls below the taxable limit, their tax liability stops. There may be a risk that the life expectancy of the individual will fall below the minimum income tax liability in the near future. In that case, it is necessary to cancel the TIN certificate in advance.  The proposed taxable income thresholds in Bangladesh for FY 2023-2024 are as follows: - Above BDT 350,000 per annum for individual taxpayers.- Above BDT 4,00,000 for females, and elderly persons aged 65 years or above.- Above BDT 475,000 in the case of a disabled person and third gender person.- Above BDT 5,00,000 in case of a gazetted freedom fighter wounded in war. Sometimes, despite having an income lower than this, one may need to present a TIN certificate for other purposes. In such cases, the holder can revoke the certificate if it is not required anymore. When a taxpayer dies, his or her TIN certificate can be canceled. After a taxpayer's death, his or her heirs are responsible for canceling the TIN. However, if the deceased had an active business, canceling the TIN requires canceling and renewing all business-related documents. In such cases, the heirs will not be able to cancel the deceased’s TIN number. If a Bangladeshi citizen works abroad with no taxable income in Bangladesh, he or she is not obligated to pay taxes. In such cases, the Bangladeshi expatriate can cancel his or her TIN registration. It is essential to remember that a person can only have one TIN certificate. Duplicating or having multiple TINs is not allowed. If any error occurs in the registered TIN due to mistakes by the registrar or tax officer, canceling the TIN might be necessary to correct the situation. Read more: Surokkha Universal Pension Scheme: Registration Process for Bangladeshi Self-Employed and Non-Institutionalized Workers How to Deactivate TIN in Bangladesh Necessary Documents To cancel your TIN certificate, you need to be aware of the following rules. You need to get the necessary documents ready in hand upfront: i. Your Current TIN certificate: Bring a printed copy of your current TIN certificate as proof. ii. National Identity Card: Carry your National Identity Card and a photocopy of it. iii. Acknowledgment of Zero Tax Return Filing: Provide a photocopy of the acknowledgment of receipt for filing zero tax returns for at least three consecutive financial years. Read more: Smart NID Card in Bangladesh: Online Application Process, Documents Needed, Fees Application Procedure for Canceling TIN Certificate Filing Zero Tax Returns for 3 Consecutive Years Since you need to show acknowledgment of zero returns filed for three consecutive financial years, it's important to prepare for the next three years. File zero returns for three consecutive years and keep the tax return receipts for later use. Applying to the Tax Circle Office When filing zero return for the third year, visit your tax circle office. Bring the receipts of returns for the last two years and complete an application form with the cess commissioner there. Clearly explain the reasons for canceling your TIN certificate in the application. Once you have written the application, submit it along with the receipts of the last three years’ returns and the necessary documents. Note that it is not mandatory for the TIN certificate owner to go to the Income Tax office for submitting the application. If he/she is unable to go, any person can appear at the Tax Circle Office on his/her behalf and submit the application instead. Tin Certificate Cancellation Fees There is no cost as announced by the government in the entire application procedures for the cancellation of the TIN certificate. That is, taxpayers can cancel their TIN certificate free of charge. Post-Application Proceedings for Canceling TIN Certificate After submitting your application, the Excise Commission officials at your tax circle will register your income tax file. They will thoroughly review the reasons mentioned in your application. If everything is in order, your TIN certificate will be finally canceled. Bottom Line TAX Identification Number (TIN) is required for many purposes. However, one can register for TIN and deactivate later, if it is not required in future. Following the TIN certificate deactivation terms, citizens of Bangladesh can apply to cancel their TIN certificates. So far, we have discussed how to deactivate TIN in Bangladesh. Hope it helps! Read more: Pragati Universal Pension Scheme: Registration Process for Bangladeshi Non-Government Employees

Finance Bill 2023 was passed on Sunday (June 25, 2023), dropping the much-debated proposed provision for Tk 2,000 for every TIN holder during submission of their income tax return. Finance Minister AHM Mustafa Kamal moved the bill and it was passed by voice vote. The finance minister accepted some other minor proposals on the finance bill in section 2 and 2-Ka. The other amendment proposals were rejected by a voice vote. Read more: Several reform initiatives on the cards as govt moves to shore up economy The finance minister accepted an amendment scrapping specific duty on import of fuel oil by reinstating the previous tax on value as concerns grow over a significant hike in prices of petroleum products under the new tax measures. The specific duty on oil imports came into effect on June 1, 2023, under the ‘Provisional Collection of Taxes Act 1931 (Act No. XVI of 1931) in the Finance Bill placed before parliament on that day. Customs Duty, VAT and Advance Tax on the import of fuels have been reinstated in the Finance Act 2023, as those were scrapped in the bill. The proposed value-added tax (VAT) on the manufacturing of ballpoint pens has been cut to 5 percent from 15 percent. Read more: e-TIN: Online registration process in Bangladesh In the Finance Bill on June 1, the finance minister proposed Tk 2,000 as minimum tax on those who have no taxable income but need to submit tax returns for availing government services.

The Foreign Investor’s Chamber of Commerce and Industry (FICCI) has expressed some concerns about the proposed national budget for the fiscal year 2023-2024 and draft Income Tax Act (ITA), 2023 which will have implications for the businesses and individuals in Bangladesh. FICCI expressed concern over perceived inadequacy of allocations for the health, agriculture and education sectors in the budget at a press briefing on Wednesday. The draft Income Tax Act (ITA), 2023 also required extensive reviews as some of the provisions in the law seems unreasonable as compared to the Income Tax Ordinance, 1984, they said. Also read:Proposed budget targets are challenging: FICCI “The progressive changes proposed by our government is applaudable, however, the growth of the businesses and individuals may slow down with the disclosure of some of the provisions which will raise more tax burden,” said FICCI President Ezaz Bijoy. “The imposed vat on locally manufactured mobile phones and increasing tax burden on loss making companies may aggravate the situation. We have some recommendations regarding solutions that may prevent the probable adverse situation. We hope that the recommendations are taken into consideration and allow the chamber to extend its continued support to the Government of Bangladesh and work together toward the development of the country by developing a tax-friendly environment,” he said. FICCI also expected gradual withdrawal of minimum tax provisions in the new law instead it has been increased significantly, particularly on carbonated beverage industry from 0.6% to 5% of Gross Receipts (8X increase). Also read: FICCI roundtable upholds importance of FDI to Vision 2041 Limiting cash transaction for corporates and organizations will put a cap on development as the country is yet to achieve total cashless transaction. Government should allow companies to spend a minimum percentage of its expenses rather than setting a definite number and set a target to achieve the 100% cashless goal in next 5 years, the press briefing also said. FICCI also proposed reduction of arbitrary power of officers in tax procedure and suggested implementation of comprehensive digitalization of the three wings of NBR and externally connected systems for seamless transaction. FICCI officials including Deepal Abeywickrema, Sr VP, Engr Abdur Rashid, member of Board of Directors, Sazzad Rahim Chowdhury, coordinator of Tarrif-Taxation and Regulatory Affairs Committee, were present at the press conference, among others. Also read: 50 years of Bangladesh: FICCI to unveil 3 growth drivers on FDI

The Asian Development Bank (ADB) on Tuesday (June 14, 2023) approved a $400 million loan to Bangladesh to advance reforms in domestic resource mobilization, improve efficiency and productivity of public spending, and help small businesses – especially women-led businesses – to access low-cost innovative bank financing. This loan is ADB’s second subprogram of the Sustainable Economic Recovery Program that was launched in October 2021 to support economic recovery after the COVID-19 pandemic. “This subprogram enables Bangladesh to enhance revenues, promote efficiency and transparency in public spending and public procurement, deepen the reforms of state-owned enterprises, and help small businesses and microentrepreneurs to access low-interest affordable credits from the banking sector,” said ADB Principal Public Management Economist for South Asia, Aminur Rahman. Read: Danish Minister Dan Jørgensen in Dhaka “The subprogram, with a strong focus on gender, climate change, and digitization, enables the government to strengthen its efforts to support income generation for the poor and vulnerable,” he added. The program will enhance income tax collection through the adoption of the new Income Tax Act, reduce tax loopholes, strengthen compliance and enforcement measures, and broaden the country’s tax net. Transparency and efficiency in public procurement will be enhanced through strengthening electronic procurement and electronic payment systems, while approval of public projects will be facilitated through the newly launched digital system of public project appraisal and approval process, according to ADB. Read: Letter from 6 members of European Parliament reflects views of signatories, Ambassador tells UNB  The new package supports the launch of innovative financing services by Bangladesh Bank through commercial banks to provide low-cost microcredit using digital channels and e-wallet. It facilitates bank lending to marginalized and landless farmers, small traders, and low-income earners. Micro and small businesses and women entrepreneurs who do not possess land or property will also be able to access finance based on their trade receipts and other forms of nonfixed collaterals, such as small equipment and machinery. Promoting gender equality and social inclusion and addressing the climate change agenda in public investment and national budgeting are some of the key activities of this new program. Promoting gender equality and social inclusion and addressing the climate change agenda in public investment and national budgeting are some of the key activities of this new program. Read: UN asked to engage more effectively with Myanmar to commence Rohingya repatriation

Bangladesh's Finance Minister AHM Mustafa Kamal in his budget speech on Thursday (June 1, 2023) proposed to increase the tax-free income limit to Tk 3.5 lakh from the existing Tk 3 lakh for individual taxpayers for the fiscal year 2023-24.He also proposed the threshold for women and senior citizens above 65 years of age to Tk 4 lakh from Tk 3.5 lakh. Read more: Finance Minister unveils Tk 761,785 crore national budgetBesides, proposals have been placed for the physically challenged persons and third-gender taxpayers to extend their tax-free income limit to Tk 4.75 lakh from Tk 4.5 lakh and Tk 3.5 lakh respectively.The tax-free income ceiling for the war-wounded, gazetted freedom fighters will be Tk 5 lakh, up from Tk 4.75 lakh. The proposed tax rates and tax slabs for all categories of individual taxpayers except companies and local authorities are: no tax on first Tk 3.5 lakh, 5 percent tax on next Tk 1 lakh; 10 percent on next Tk 3 lakh; 15 percent on next Tk 4 lakh; 20 percent on next Tk 5 lakh and 25 percent income tax on the balance of total income. Read more: Budget sets 7.5 percent annual economic growth, inflation at 6 percent

The owners of newspapers and other media institutions will have to pay the income tax of their journalists and other employees, the High Court ruled on Sunday. The HC bench of Justice Md Ashfaqul Islam and Justice Md Shohrowardi passed the order declaring the Cabinet recommendation on gratuity and income tax in the 9th wage board as illegal. As per the rule, journalist-employees would get two gratuities in a year equal to the basic salary of a month. Read more: Income tax return mandatory to buy aboveTk 5 lakh saving certificates Lawyer Kazi Aktar Hamid and lawyer Didarul Alam appeared for the writ petitioner while Deputy Attorney General Kazi Mainul Hasan for the state. On January 29 in 2018, the 9th Wage Board of 13 members was formed headed by retired Justice Md Nizamul Huq of the Appellate Division of the Supreme Court. Later, Justice Nizamul submitted a report to the then Information Minister Hasanul Haq Inu on November 4 of the same year, recommending a maximum increase of 85 percent in the salaries of journalists. Then in January 2019, the Cabinet Committee related to the implementation of the 9th Wage Board was reconstituted, making Road Transport and Bridges Minister Obaidul Quader convener of the board. The government announced the 9th Wage Board through  gazette notification on September 12, 2019. Read more: Income Tax Wing of NBR racing to meet target in last 4 months of fiscal But, according to chapter 12 of the notification regarding the cabinet committee recommendations for the 9th Wage Board, journalists and employees have to pay income tax from their own income and will receive a gratuity yearly equal to the basic salary of a month. On November 23 in 2020, Mohammad Mahbubuzzaman, general secretary of the Bangladesh Sangbad Sangstha (BSS) employees’ association, filed a writ petition with the HC challenging the cabinet committee recommendations. On November 25 of the same year, the court issued a rule asking why the cabinet committee recommendations should not be declared illegal. The information and labour secretaries were made respondents to the rule.

From now on, if anyone wants to invest in savings certificates above Tk 5 lakh, he or she must show proof of last year's income tax return submission. Besides opening an account in Post Office Savings Bank, returns have also been made mandatory. The department of debt management of Bangladesh Bank (BB) issued a circular in this regard on Monday. This circular has been sent to the top executives of all commercial banks operating in the country. Also read: Income tax returns made mandatory to get 40 types of services According to the circular, the Directorate of National Savings Certificates, and the Government Gazette, the Central Bank has directed the banks to take necessary measures for proper compliance of section 48 of the Finance Act, 2022 in the case of investments exceeding Tk 5 lakh at Savings Certificates and Post Office Savings Banks. As per the instructions, from now on if a person wants to open a postal savings account or investment of more than Tk 5 lakh in savings certificate, he will have to show proof of deposit of income tax return of the last year. It means the government thinks your income is within the taxable income limit. Similarly, if a person has a bank account, in any case, if the credit balance exceeds Tk 10 lakh, the bank will have to provide the return deposit certificate. Also read: DSCC conducts drive at Gonoshasthaya Nagar Hospital for non-payment of holding taxes since 1998-99 The same will happen in the case of applying for a bank loan of more than Tk 5 lakh or taking a credit card. That is, he cannot do any of this without filing an income tax return.