NBR simplifies income tax return forms

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S M Jahangir
The National Board of Revenue (NBR) has simplified its income tax return forms to make the tax payment easier and compliance-friendly for the taxpayers.
The purpose of simplifying the return forms is to lure more people in the tax collection network, the NBR sources said.
"We have made the forms of income-tax return as simple as compliance friendly for taxpayers - both individuals and companies - under the Income Tax Ordinance 1984," a senior NBR official said.
The official further said taxpayers in both the categories have, from now on, to submit their income tax returns through the new form.
Apart from the simplification, the new form of income-tax return has been cut short to only two pages from the previous eight pages for the individual taxpayers, he noted.
Like previously, taxpayers will require attaching necessary additional income-related particulars with the new forms, he added.
The newly modified forms of return will be available shortly, the NBR officials said, adding that those will also be available on the NBR's website.
According to officials, such modification in the return form aims to make the government tax-revenue collection system time-bound, and hassle-free for taxpayers.
"We have simplified the return forms in line with the government's current move to boost the revenue collection through making the tax payments hassle-free and convenient for taxpayers," said an official,
The official expressed the hope that such initiative will help the authorities bring more people under the tax net.
The government has already curtailed the discretionary power of the tax officials and introduce a 'Universal Self-Assessment Procedures' with a view to encouraging taxpayers to pay tax voluntarily, official sources said.
They also observed that collections of income tax had been affected due to the general aversion of taxpayers as well as procedural complexities in the payment of taxes.
As a result, the number of taxpayers in Bangladesh still remains much lower than the expected level, they mentioned.
Referring the official figures, around 1.0 million people submit income tax returns while the actual number of taxpayers is lower than that.
On the other hand, the total number of tax-payers' identification number (TIN) holders has reached 2.1 million in Bangladesh.
Citing the existing mismatch between the number of TIN holders and taxpayers, officials admitted that a large number of TIN holders are either 'irregular' of 'fake'.
Against this backdrop, the authority has already initiated a process to bring maximum number of TIN holders under the tax network.
Meanwhile, the government has set the target of tax collection from income and profit at Tk 103.38 billion for fiscal 2007-08.