A fabulous US$167 billion or Tk 20 trillion worth of revenue can be mobilized per annum by 2030 if Bangladesh goes for full digitisation of the tax system.
A study by the Centre for Policy Dialogue (CPD) raises such hope as it finds the possibility that a modest coverage of electronic filing of taxes to 25 per cent may help the government mobilise an additional domestic revenue equivalent to 1.2 per cent of the country's gross domestic product.
The country's tax-GDP ratio hovers around 8.0 per cent and economists attribute such low rate, among others, to budget shortfalls.
"Country could increase revenue by an additional $5.8 billion in a year through transition to 25 per cent of all taxes being filed online," it says about a silver lining on the horizons at a time of much ado about revenue shortages in financing budget.
Also, it reminds that the country is receiving less revenue than taxpayers paying due to porous manualised system of taxing.
The data were placed Sunday in a presentation prepared by Prof Mustafizur Rahman, distinguished fellow of the CPD, and Isabela Rozario Mumu, its programme associate.
The presentation on 'Digitisation of the Bangladesh Tax System: the Next Frontier for Higher Resource Mobilisation' also recommends that the government introduce a unique number which is required to open bank account, getting government subsidies and accessing other services such as air travels.
Presenting the keynote, Prof Mustafiz said tax authorities could verify tax payable through expenditure information and detect tax evasion.
The chief guest at the programme, State Minister for Finance Waseqa Ayesha Khan, said large corporates want to conduct financial transaction in cash and often claim they cannot avail reduced rate of corporate taxes as condition of cashless transaction binds the fiscal benefit.
"How we can be cashless if large businesses want to do so?" she questioned about the drawback to going digital.
Speaking at the programme, National Board of Revenue (NBR) chairman Abu Hena Md Rahmatul Muneem said the revenue board stands helpless when it gets tax-collection target in the budget to mobilise revenue set without assessing the NBR capacity.
"The target is set for NBR on the basis of actual targets of the running year by adding a percentage and putting the NBR in a risk to miss it," he told the audience.
Mr Muneem also presented a paper on NBR's digitisation move, contribution of tax expenditures to the economy, tax-collection growth and so.
Dr Mustafiz made a point that country's debt repayment is being conducted through debt.
At the programme, chaired by Executive Director of CPD Dr Fahmida Khatun, distinguished fellow of CPD Dr Debapriya Bhattacharya said some of the influential quarters are tax-evaders and involved in siphoning off money.
He suggests enhancing institutional capacity, prudent expenditure of taxpayers' money and ensuring interoperability.
Kazi Nabil Ahmed, chairman of the Parliamentary Standing Committee on the Ministry of Posts, Telecommunications and Information Technology, attended the programme as special guest.
Md Alamgir Hossain, former NBR member for income tax, Shams Mahmud, Director of Bangladesh Garment Manufactures and Exporters Association, Syed Khaled Ahsan, senior public- sector specialist, the World Bank, were distinguished discussants.
Enrico Lorenzon, team leader, inclusive governance delegation of the European Union to Bangladesh, delivered introductory remarks.
Speakers at the dialogue stressed the need for ensuring interoperability to get full benefit of digitisation, human resource development, not keeping any black money-whitening scheme, ensuring political will for digitisation, and stopping underhand dealings by way of automating the customs,
Shams Mahmud said automation is required for "ease of doing business".
"Revenue is mainly mobilized from the capital city while a large part outside the capital remained untapped," he said to underscore the urgency of casting tax net wider.
Mr Alamgir, former tax member, said digitisation process has not progressed for years as integration of systems was missing.
In the presentation, Dr Mustafiz said investment on the NBR capacity building is required to get its multiple returns in the form of revenue receipt.
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