The National Board of Revenue (NBR) is willing to simplify bond facility, amid thrust on diversifying Bangladesh's narrow export basket to boost trade in order to face forex shortages.
NBR chairman Abu Hena Md Rahmatul Muneem said this during a meeting with the economic reporters on Monday.
On taxing affairs he said the numbers of income tax and VAT returns both have substantially increased above 20 per cent since 2010 with "relentless efforts of the taxmen to strengthen tax-base". Income-tax returns grew to 3.6 million, up by 20 per cent from 2.4 million in 2010, while VAT returns increased nearly threefold, from 0.2 million to 0.5 million.
In the wake of prods for raising the tax-GDP ratio through casting wide the tax net, instead of higher taxing of the existing taxpayers, he expressed his resolve to raise the number of income-tax returns to 4.0 million by end of this year.
Mr Muneem, also Senior Secretary at the Internal Resources Division (IRD), was speaking at a pre-budget consultation with the Economic Reporters Forum (ERF) at the NBR office, where the forum put forward a package of proposals for the government's revenue authority to consider for the next budget for fiscal year 2024-25.
The proposals include bringing down import tariffs gradually to get prepared for facing the challenges of Bangladesh's graduation to middle-income status, unified VAT rate at 7.0 per cent, medium taxpayer unit at upazila and growth centres, tax-refund system to the people having below-taxable income, revising excise duty on bank deposits, cut in the tax rates for newspapers, television, online and other media outfits, installing Electronic Fiscal Device (EFD) in luxury shops and similar types of businesses, considering upward adjustment of tax-free ceiling, keeping private provident fund tax-free, introducing the highest tax slab at 30 to 35 per cent, bonded-warehouse facility for all exporters, separate incentive packages for small and medium enterprises, NBR-ERF collaboration to increase tax-GDP-ratio, and impact study.
President of the ERF Refayet Ullah Mirdha delivered welcome speech while ERF member Doulot Akter Mala presented the budget proposals for the forthcoming fiscal year on behalf of the forum members.
Responding to a query, the NBR chief said the revenue authority is not willing to form a separate 'tobacco cell' giving it priority.
"Its' difficult to reach bidi, jarda manufacturers as those products are being prepared in cottage or informally," he added to substantiate their stand.
There have been data mismatches in external trade of the country. In this context, he said the revenue board, too, is concerned over data mismatch between different entities and the NBR but such discrepancy appears for various reasons that include cancellation of orders, returned shipments, export from export-processing zones etc.
He also feels it is important to come out from the cash transactions in phases to track all financial transactions and cut the size of informal economy -- perceived as a spinoff from shady economic and financial dealings.
The NBR chairman sought cooperation of the newsmen in making consumers aware about taking invoices after purchasing goods in order to ensure VAT deposit to the public exchequer by businesses.
On unified VAT he finds it difficult to implement as principle of VAT is based on adjustment of input credits.
He, however, pointed out that some of the major consumer items are under 5.0 to 7.0 per cent VAT.
On tax-return preparer, the NBR chief said the concept, reeling through legal disputes, would help the government to increase the number of taxpayers faster in a cost-effective way.
"There is no scope of conflicts of interest between the income-tax professionals and TRP as ITPs are also allowed to register as TRP," he added.
He agreed on the ERF proposal for opening a helpline for taxpayers so that taxpayers can get answers to their questions.
Mr Muneem agreed to simplify bonded-warehouse facilitates in a bid to help local producers export their goods.
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