Minimum taxes may go in the first stroke as the advisory committee on revenue reform suggests exploring ways to phase out some regressive-nature taxes.
In a meeting with the National Board of Revenue (NBR) high-ups Tuesday, the members of the panel also underscored the need for automating the tax and VAT offices across the country.
Top officials of the NBR also agreed on the need to come out from the taxes that include Tax Deducted at Source and VAT Deducted at Source, but expressed concern over adverse impact on country's revenue mobilisation unless alternatives were found.
"Such TDS is in practice all over the world. We have to find out the reasons why such taxes have been incorporated into the tax law, and in what situation," says a senior income-tax official.
The tendency of concealment of actual income and tampering with financial statement to evade taxes are the major reasons for introduction of minimum taxes or TDS, he adds.
Former NBR chairman Dr Muhammad Abdul Mazid said the NBR officials expressed their concern over deprivation from due support to mobilize higher revenue, including cars and other logistics.
They raised the issues on the privileges enjoyed by administration-cadre officials with the resources mobilized by revenue officials but such benefits are not made available for the latter, he added.
Former VAT member Farid Uddin said the top management of the NBR sounded positive on the need for reform, automation of the VAT-and income-tax wings and coming out from the concept of TDS or VDS.
"Such consensus raised hopes over execution of a successful reform plan," he added.
The Internal Resources Division (IRD), early this month, formed the five-member advisory committee to bring positive reforms in the NBR-in the wake of waves of changes triggered by the August uprising.
The committee would recommend on revenue policy, administration reform, evaluate organizational capacity of the NBR and recommend its modernization.
It would also advise integrity and good governance in organizational structure and policy framework, citizens' communication and stakeholders' activity and policy support for other revenue-reform activities.
The advisory-body members include two former chairmen of the NBR-- Dr Mohammad Abdul Mazid and Dr Nasiruddin Ahmed--former income-tax members Md Delwar Hossain and Aminur Rahman, former Customs member Farid Uddin.
The Member (board administration) of the NBR is providing secretarial support to the committee.
The revenue board has formed the body with the approval from the Finance Adviser for the interim government in the recast process.
[email protected]
