A total of 1,237,357 new taxpayers were added by the National Board of Revenue (NBR) in the last fiscal year due to the fiscal measures incorporated in the Finance Bill-2022.
From June 1, 2022, the revenue board made the submission of the Proof of Submission of Tax Returns (PSR) mandatory for obtaining 38 types of services.
Subsequently, the number of Taxpayer Identification Number Holders (TIN) has risen to 9.0 million, up by 16 per cent compared to the previous fiscal year, according to NBR data. As of June 30, 2022, there were some 7.7 million TIN holders.
Officials said the mandatory PSR measure compelled many people to obtain TINs and submit tax returns in FY 2022-23.
According to tax officials, the number of tax returns has increased by 1.0 million and may experience a significant rise this year.
Until June 30, 2023, some 3.4 million individuals and 33,905 corporate taxpayers have submitted their tax returns. In FY 2021-22, around 2.5 million (2,590,531) individuals and corporate taxpayers submitted their tax returns nationwide.
"Many of the new TIN holders would submit their tax returns in the current FY.
It takes time to develop a culture of tax payment," said a senior tax official.
The Khulna tax zone added the highest number of taxpayers last year among the 31 zones across the country. The number of TIN holders rose to 856,385 in FY 23, an increase of 298,892 from the previous year.
Md Sirajul Karim, the tax commissioner of the Khulna tax zone, said it is the largest tax zone with a substantial number of salaried taxpayers.
He, however, attributed several challenges in providing prompt services to taxpayers due to limited manpower and logistics.
Although the Khulna tax zone has similar logistics and manpower to other tax zones, the jurisdiction of it is vast, he added. He emphasised that automation is necessary for efficient tax services, as online submission of tax returns can alleviate the problem.
The tax commissioner mentioned that the number of salaried taxpayers among government employees increased after the implementation of the 2015 National Pay Scale.
The Jessore circle, located within the Khulna tax Zone, receives the highest number of tax returns - around 40,000 - across the country. There has been a move to open two new tax zones in Jashore and Kustia to enhance taxpayer services.
NBR officials said that online submission of tax returns and the issuance of PSRs could encourage more people to come under the tax net.
Income tax collection grew by 10.03 per cent in the last year compared to the corresponding period in the previous year.
During FY 23, the NBR collected Tk 1.13 trillion in income tax, below its target of Tk 1.22 trillion.
Tax zones 4, 9 and 8 in Dhaka saw the highest growth in income tax collection last year. Among the registered taxpayers, around 1,103 are considered large taxpayers, both individuals and companies.
Cumilla boasts the second-highest number of TIN holders or registered taxpayers, followed by Tax Zone-3 in Dhaka, Rajshahi and Gazipur.
The government aims to collect 50 per cent of its revenue through direct taxes. Currently, the share of income tax stands at around 34 per cent. A significant portion of the collection comes from advance, withholding or source taxes at the import stage.
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