FE Today Logo

Everything in taxation should go online: PwC

Meeting revenue collection target


FE Report | June 13, 2018 00:00:00


The government needs to strengthen its online tax monitoring to help raise its capacity to meet the annual revenue collection target, opined the PricewaterhouseCoopers (PwC), an international professional services firm.

Everything concerning tax, including tax registration and tax filing, should go online, the PwC officials said at a post-budget briefing in the capital on Tuesday.

"For example, currently it is very difficult for the government to monitor who is paying the TDS (tax deducted at source) and who is not," said Sushmita Basu, partner and leader of Bangladesh Tax and Regulatory Practice for PwC.

"However, if the whole process of tax payment, tax collection and TDS realisation can be monitored online, it will definitely increase the revenue generation and widen the tax net."

"The latest government initiative to install electronic devices at all business units can help such online tax monitoring," she added.

The PwC experts also observed that better digitisation of the tax system can also help reduce the scope of tax evasion.

Their recommendations came four days after Finance Minister A M A Muhith placed the Tk 4.65-trillion national budget for the upcoming fiscal year (FY), 2018-19.

The budget has set a revenue collection target of Tk 3,392.80 billion for the upcoming FY, which is Tk 798.26 billion higher than the revised target for FY 18.

Top economists of the country, however, have expressed their scepticism about achieving the target.

They found the government's existing revenue generation capacity is not enough to meet the target.

In this context, the PwC experts emphasised digitisation and online tax monitoring for attaining the revenue collection target.

Focusing on the tax rates proposed in the budget, they said real estate is set to get costlier due to increase in the VAT (Value Added Tax) rate of construction services from six per cent to seven per cent.

"In addition, flats up to 1,100 square feet would be costlier following the rise in the VAT rate from 1.5 per cent to 2.0 per cent," said Prabir Mitra, Manager of Tax and Regulatory Services of PwC.

"At the same time, reselling flats would also be costlier due to the introduction of two per cent VAT," he added.

However, they also pointed out that the latest budget has proposed tax or VAT incentives for a number of locally-manufactured products like refrigerator, bicycle, electronics and medicine.

Noting that currently around 25 per cent population of Bangladesh earns more than US$ 6,500 per year, the PwC experts called for creating better investment scopes for this segment.

mehdi.finexpress@gmail.com


Share if you like



COMPANY YCP HIGH LOW CLOSE %CHG
PARAMOUNT 17.0 18.7 16.7 18.7 10%
GLOBALINS 12.8 14.0 12.7 14.0 9.375%
MEGHNACEM 91.1 99.9 92.1 98.1 7.6839%
PROVATIINS 16.4 17.7 16.5 17.5 6.7073%
PURABIGEN 12.4 13.5 12.5 13.2 6.4516%
ASIAINS 16.7 17.7 17.0 17.6 5.3892%
KARNAPHULI 15.0 15.9 15.0 15.8 5.3333%
REPUBLIC 25.1 27.2 25.3 26.4 5.1793%
MIDASFIN 23.1 24.4 23.3 24.2 4.7619%
PRIMEINSUR 12.7 13.6 12.9 13.3 4.7244%
COMPANY YCP HIGH LOW CLOSE %CHG
GLOBALINS 14.0 14.0 12.7 12.7 10.2362%
PARAMOUNT 18.7 18.7 16.7 17.0 10%
GREENDELT 58.9 59.0 52.5 54.0 9.0741%
PURABIGEN 13.3 13.5 12.5 12.5 6.4%
PROVATIINS 17.4 17.7 16.5 16.5 5.4545%
MEGHNACEM 97.0 99.9 92.1 92.1 5.3203%
IFIC1STMF 4.2 4.2 4.0 4.0 5%
POPULAR1MF 4.2 4.2 4.0 4.0 5%
DAFODILCOM 34.9 35.1 33.3 33.3 4.8048%
FASFIN 13.5 13.6 12.8 12.9 4.6512%
COMPANY YCP HIGH LOW CLOSE %CHG
ALLTEX 14.0 14.4 12.6 12.6 -10%
AL-HAJTEX 98.2 105.3 88.4 88.4 -9.9796%
ISNLTD 31.5 28.4 28.4 28.4 -9.8413%
CAPMIBBLMF 11.5 11.6 10.4 10.4 -9.5652%
JUTESPINN 148.4 152.9 133.6 134.6 -9.2992%
KEYACOSMET 7.6 7.3 6.8 6.9 -9.2105%
KTL 29.7 30.2 26.8 27.0 -9.0909%
MLDYEING 39.6 40.3 35.8 36.2 -8.5859%
IBP 36.9 37.0 33.5 33.8 -8.4011%
GQBALLPEN 82.5 84.5 75.0 76.1 -7.7576%
COMPANY YCP HIGH LOW CLOSE %CHG
AL-HAJTEX 88.4 105.3 88.4 101.3 -12.7345%
ALLTEX 12.6 14.4 12.6 14.4 -12.5%
GQBALLPEN 75.0 84.5 75.0 84.4 -11.1374%
CAPMIBBLMF 10.4 11.6 10.4 11.6 -10.3448%
JUTESPINN 133.6 152.9 133.6 149.0 -10.3356%
KTL 27.0 30.2 26.8 29.9 -9.699%
MLDYEING 36.2 40.3 35.8 39.7 -8.8161%
IBP 33.9 37.0 33.5 37.0 -8.3784%
PRIMELIFE 53.8 59.7 53.8 58.0 -7.2414%
ARAMIT 431.1 463.0 429.0 463.0 -6.8898%