The government has drawn up a draft action plan for raising the volume of tax revenue equivalent to 14.1 per cent of the gross domestic product (GDP) by fiscal year (FY) 2019-20.
Under the plan, prepared by the Internal Resources Division (IRD), the total revenue collection has been projected to be raised to Tk 4.62 trillion by the FY'20.
The action plan is a consolidated form of revenue structure laid down in the seventh five-year plan for national development and the UN-designated sustainable development goals (SDGs).
In the draft action plan, total revenue is projected to be equivalent to 16.1 per cent to the country's GDP (gross domestic product).
The tax-revenue collection by the National Board of Revenue (NBR) is projected to reach 13.7 per cent of the GDP by the terminal fiscal year (FY20) of the seventh plan from 10.3 per cent in FY16.
The plan earmarks growth of customs duty, Value Added Tax (VAT), Supplementary Duty (SD), income tax, non-NBR tax, non-tax revenue from FY16 to FY20.
VAT and SD are expected to grow to 7.0 per cent of GDP from 5.4 per cent in FY16.
The government has decided to introduce the new VAT and SD law 2012 from July 1, 2017. VAT officials said the new law would help in "maintaining recorded business transactions and increasing VAT collection substantially".
Income tax has been projected to grow to 5.4 per cent of GDP by FY20 from 3.7 per cent in FY16.
IRD's planning division has prepared the action plan. It has sought opinion on draft of the action plan from members of the action plan-drafting committee.
The IRD has sent the draft to the NBR members under three policy wings -- income tax, VAT and customs -- and the director-general (DG) of the National Savings Directorate for their suggestions.
Talking to the FE, one of the members of the committee said, "The draft plan will go through review and update by the committee members before taking a final shape."
The action plan has set a timeline for the NBR for introducing voluntary compliance for taxpayers through training and services by 2017.
Intensive monitoring for better service delivery throughout the year, capacity development and management of NBR officials, and dispute-or grievance-management capacity building are set to be done by 2020.
The NBR will have to frame transfers and postings policy, offer performance reward with hire-and-fire policy, introduce inter-department integration process for revenue collection, and online connectivity between the customs database and Bangladesh Bank (BB) database for combating money laundering.
By 2018, as planned, the NBR will complete the process of e-filing of VAT returns on a pilot basis at large taxpayers units (LTU), set up a new customs house and inland container depot and also set up four new VAT commissinerates and three VAT appeal commissionerates by next year.
   Doulot_akter@yahoo.com
Govt plans to raise tax revenue to 14.1pc of GDP
Doulot Akter Mala | Published: September 18, 2016 00:00:00 | Updated: February 01, 2018 00:00:00
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