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It's better to skip marginal taxpayers

NBR chief says, underlining the need for automation, tax net expansion


FE REPORT | March 16, 2020 00:00:00


Making tax-return submission mandatory for all TIN holders would not be fair, said chairman of National Board of Revenue, or NBR.

Abu Hena Md Rahmatul Muneem on Sunday said Taxpayers Identification Number is required for opening bank accounts.

"Widows or senior citizens would require bank accounts to receive their allowances. They are not supposed to submit tax returns," he said.

He was speaking at a seminar on income tax reform in the upcoming budget, organised by the Institute of Chartered Accountants of Bangladesh at its office in Dhaka.

Former ICAB president Humayun Kabir chaired the session.

ICAB council members Snehasish Barua and Mohammad Al Maruf Khan presented income tax policy paper on the forthcoming amendment to the income tax ordinance 1984.

ICAB president Muhammad Farooq delivered a welcome speech in the session.

He said reform in the tax law is the demand of the changing world.

The NBR chief admitted that the existing system to chase or track taxpayers is not efficient.

He said automation and e-commerce are the areas of the digital economy to pay attention.

He said chasing the marginal taxpayers involves cost and energy, which should be reviewed.

The NBR chairman underlined the need for the simplification and expansion of the tax net and automation.

In his paper, Mr Barua focused on expansion of tax net, automation of tax return submission and tax payment, integration with other statutory organisations, rationalisation of tax exemptions with GDP growth of different sectors, introduction of a new tax rate 5.0 per cent for individual taxpayers, etc.

He also proposed slashing corporate tax rates to attract investment.

Mr Maruf laid emphasis on framing rules to tax the digital economy.

NBR members Ranjan Kumar Bhowmik and Nahar Ferdousi Begum, among others, spoke at the seminar.

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