Bangladesh has sought the US Department of the Treasury's assistance to strengthen the National Board of Revenue's (NBR) capacity in the areas of tax- policy analysis, digital forensic-data analysis, and taxing digital economy, sources say.
Also, assistance was sought to obtain techniques of risk-based audit selection, digital transformation of tax operation and administration, techniques of treaty negotiation, and understanding Base Erosion and Profit Shifting (BEPS) framework.
NBR officials sought the assistance when a team of the US Department of the Treasury's Office of Technical Assistance (OTA), led by George L Dodd, visited Dhaka to discuss potential areas of assistance.
The NBR recently informed the finance ministry that they were awaiting response from the OTA in this regard.
Tax evasion by institutions and individuals is rampant in Bangladesh, which is why the tax-to-GDP ratio remains one of the lowest in the world.
The International Monetary Fund has pushed Bangladesh to increase the ratio to 9.20 per cent in the next fiscal year from the current rate of around 6.6 per cent.
NBR bosses think revenue collection can be enhanced significantly by strengthening the capacity of officials and using improved techniques and technologies.
Moreover, sources say, US assistance was sought for the Mutual Legal Assistance (MLA) and exchange of information, transfer pricing audit, digital techniques of tax net expansion, and support in implementing Advance Cargo Information Systems (ACIS) and Advance Passenger Information Systems (APIS).
Besides, technical training on financial crime risk indicators in import/export transactions, participation in US-led or supported regional AML/CTF initiatives, dialogues, and simulation exercises were sought for NBR officials.
Technical assistance was sought to set up or strengthen a centralised classification unit and a classification database within Bangladesh Customs, sources say.
NBR officials also sought US assistance for preparing the implementation framework for cross-border e-commerce, including automation of simplified declarations, risk management, and interface with authorised courier services.
A senior Finance Division official told The Financial Express the government was under tremendous pressure from development partners to enhance revenue collections for creating fiscal space so that the country could provide the necessary assistance to improve poor people's standard of living.
He said the government would set a big revenue target to fund the rising spending pressure in the next fiscal budget.
"The NBR needs to strengthen its capacity and act proactively to attain the revenue earnings target," he added.
syful-islam@outlook.com
