The online tax return festival is all set to go far beyond the parameter drawn before. Policymakers think that simplifying tax filing procedure online will inevitably draw in a lot more people who will get enrolled in filing taxes regularly. Contrary to popular opinion, it is not generally the ordinary people who evade taxes, but large business entities who have traditionally been adept at finding loopholes in the system do.
In Bangladesh, filing taxes had always been largely a manual affair. On top of that, there has always been a lot of apprehension amongst people that once his / her name is in the system, there may be trouble down the road. Indeed, if past experiences are anything to go by, in the ambience of contentious politics that exists in Bangladesh, the first rule of harassment for any individual or business entity is to look at the tax file.
That said, things have been improving over the last few years, and that has a lot to do with some prudent decisions taken in the past. Availing many essential services made submission of tax returns mandatory. Then came the introduction of electronic submission of taxation by individuals but there was a lot of confusion as to how it would be received. If published reports in the media are anything to go by, people have responded positively. In fact, the national board of revenue (NBR) expects that there will be some 2.0 million e-returns this year. That more people will submit tax returns online is a step in the right direction. According to a report published in this newspaper, NBR has received new e-tax returns totalling 119,961 until October 27, which is slightly lower than the 120,561 over the corresponding period last year. It should not be seen negatively because the country had undergone a major political changeover in the July-August period, which had brought all normal activity to a standstill. In fact, the numbers are quite encouraging, i.e. nearly a million taxpayers have registered with e-tax return portal since last year.
These numbers do not lie. Given the minor hiccups experienced by online tax payers that were smoothened out with the help of NBR officials and tax lawyers, people have responded positively to the move. Manual filings had always been a daunting task, but the introduction of the e-tax portal is beginning to show promise. The authorities state that a dedicated server would be installed to handle the increased traffic for tax return payees to ensure uninterrupted service, as last year, there was a server failure causing a lot of panic and distress. Hopefully the new system will take care of this problem.
The good thing is that individual taxpayers will no longer be required to submit supporting documents, including bank statements, in filing their tax returns online. Integration with various income sources-such as car registrations, government salaries, savings certificates-will limit the potential for concealment of information to evade taxes. However, it should be clear that there needs to be a sustained public relations campaign that will run throughout the year to educate people on the need to pay taxes. If people want better services, they have to pay taxes. Public services include everything from water, electricity, education and health --- all require money. Public infrastructure like roads, highways, bridges and culverts, sewerage lines, etc. don't appear out of the sky like magic - they have to be paid for by the government. So, if people want a better quality of life, they have to do their part and that is pay direct income tax.
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