NBR set to scrap advance tax payment for TIN

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Doulot Akter Mala
The National Board Revenue (NBR) is set to scrap advance tax payment system to obtain TIN for the taxpayers unwilling to come under tax-net after it found the system is slowing the pace of new taxpayers' survey.
The NBR is conducting a study to scrap the provision of issuing taxpayers' identification number (TIN) within the shortest possible time following requests from the field offices.
"We are reviewing the possible impact of waiving the advance tax system," said NBR member Aminur Rahman, who heads the income tax policy wing. There are some legal complexities in waiving the advance tax for those unwilling to come under tax-net, he said.

The measure might be taken for encouraging the new taxpayers, identified through external survey, said another tax official.
"The surveyors have found a number of people unwilling to obtain TIN. Tax offices also found it difficult to collect the minimum tax of Tk 1,000 from them before issuance of TIN," he said.
The revenue board has taken the issue seriously following requests from the field offices that are assigned with the task of including new 0.4 million new taxpayers by June, he said.
The NBR has found nearly 0.17 million new taxpayers until March through its ongoing door-to-door survey.
The government in the current fiscal imposed the minimum advance tax of Tk 1,000 to obtain TIN. The advance tax is adjustable with the actual tax after assessment of tax returns.
"The field offices found it a major obstacle in the new taxpayers' survey process," said a senior official in a field office of income tax department.
Some tax offices have achieved their set target for including new taxpayers, but all efforts will be useless if taxmen failed to issue TIN to them.
The advance tax for TIN will also hinder the government's move to launch online tax-return system where taxpayers and taxmen would not meet each other, he said.
Taxpayers have to come to the tax offices for payment of the advance tax for obtaining TIN despite submission of tax return through online. The system will be no longer useful in the automated tax return system, the tax official added.