CHATTOGRAM, Apr 09: National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan said the tax authority is moving towards a system where liabilities will be assessed based on actual income rather than upfront collections at the import stage.
The system is being modernised to encourage those who are hesitant towards payment of VAT and taxes, he said.
Besides, the bond system will be modernised so that traders do not become victims of harassment by ending the manual system for non-compliant taxpayers, stopping arbitrary physical inspections by customs, and coordinating with the re-export of imported goods under the bond facility, said the NBR chairman.
He further said the NBR is taking measures so that taxpayers can file returns throughout the year in a festive atmosphere.
The NBR chairman was speaking at a pre-budget discussion with the leaders of Chittagong Chamber of Commerce and Industry (CCCI) at World Trade Centre on Thursday.
The NBR chairman said: "The number of taxpayers is increasing day by day. The volume of tax collections is satisfactory now. It is essential to boost revenue collection to help lessen government's borrowing from banks, which often affects the private sector's access to credit."
The CCCI Administrator Md. Motahar Hossain presided over the meeting, which was addressed by former presidents of CCCI Amir Humayun Mahmud Chowdhury and Farid Ahmed Chowdhury, President of Women's Chamber Abida Mostafa, former director of FBCCI Md. AmirulHaque, former vice-president of Chittagong Chamber Syed Mohammad Tanvir, its former directors Dr. Moinul Islam Mahmud, Nasir Uddin Chowdhury and M Mohiuddin Chowdhury, President of Chittagong Garments Accessories Group Jasim Uddin Chowdhury, President of Rangamati Chamber Mohammad Mamunur Rashid Mamun,C&F Association President S. M. SaifulAlam, GPH Ispat DMD Almas Shimul, Prantik Group MD Engineer Golam Sarwar, BSM Group Abul Bashar Chowdhury, Ship Breaking Association Master Abul Kashem, Barvida Secretary General Riaz Rahman, CAB
Iqbal BaharChhaberi, Tire Tube Association President Main Uddin Ahmed, Port Truck Owners Contractors Association General Secretary Humayun Kabir Sohel, Business leaders from various sectors, including BGAPMEA 1st Vice President Mohammad Shahidullah Chowdhury, Sahir Trade's Sarwar Alam Khan and Terry Bazar Traders Association President Abdul Mannan.
Speaking on the occasion, the business leaders called for a sweeping shift to a fully digitalised tax regime, pointing out that the present cumbersome audits and advance taxes at the import stage are affecting working capital and slowing business operations.
The speakers said delays in tax refunds and prolonged audit process-- sometimes stretching up to five years-- are creating persistent pressures on business firms.
They also called for bringing tax refunds and audits under a comprehensive digital platform and forming specialised audit units to speed up dispute settlement process.
The business leaders suggested that instead of increasing the burden on compliant taxpayers, the tax authorities should focus on widening the tax net and simplifying rules to improve compliance.
Besides, they also suggested raising the tax-free income threshold for individuals to Tk 0.5 million from the existing Tk 0.375 million and revising tax slabs to give relief to middle-income groups.
The CCCI submitted a total of 136 proposals-- 33 on income tax, 36 on VAT, and 67 on customs duties--for the next budget.
The chamber noted that domestic production meets only about half of the country's annual demand for octane and petrol (estimated at 900,000 tonnes) and stressed the need for investment in new refineries and expansion of existing facilities.
To support a transition toward cleaner energy, speakers also proposed introduction of tax incentives for electric vehicle imports and broader policy support for green energy.
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