NBR initiates public hearings to bridge gap with taxpayers

Tax officials will now hold public hearings in their respective tax zones across the country to bridge the gap with taxpayers and address their problems.
Senior Secretary of the Internal Resources Division (IRD) and National Board of Revenue (NBR) Chairman Abu Hena Md Rahmatul Muneem initiated the move, the first of its kind, following widespread misconceptions on tax issues among taxpayers, officials said.
Currently, some government entities including the Bangladesh Energy Regulatory Commission (BERC) and the Directorate of National Consumer Rights Protection (DNCRP) hold public hearings on different national issues.
Tax commissioners will hold hearings every Tuesday at their respective premises to meet taxpayers in person.
Taxpayers will be able to share any issues related to complying with tax laws, including seeking Proof of Submission of Tax Returns (PSR), which is mandatory to obtain 44 vital services.
Both individual and corporate taxpayers will have direct access to the high-ups of their respective tax zones to share their grievances or other complexities they face in tax payment procedures.
While talking to the FE on Monday, NBR Chairman Mr Muneem said many taxpayers remain unaware of tax-related issues and are often misguided by third parties as they rely on them.
"We made the decision to address such confusion and bridge the gap between taxmen and taxpayers," he said.
The public hearings will help educate taxpayers on tax laws and provide a comfortable environment to exchange their views, he added.
Tax-related litigations will be reduced under the initiative as taxpayers will have direct access to the high-ups of the tax zones, he said.
Taxpayers often complain about the behaviour of tax staff and prefer to avoid visiting tax offices, opting instead to engage third-party consultants for tax-related issues, Mr Muneem added.
Following the instructions, some tax zones have already started inviting taxpayers to attend the hearings to share their problems and queries.
Mohd Abul Kalam, commissioner of Taxes for Zone-12 in Dhaka, said that his zone has already invited taxpayers by posting invitations on the website and Facebook page of the jurisdiction, but they have yet to receive any queries or responses.
"We will begin sending letters directly to taxpayers, both individuals and corporations, inviting them to join us for the public hearing every Tuesday," he said.
Tax experts noted widespread confusion regarding income tax matters following the introduction of the new Income Tax Law-2023. They said the transition to the new direct tax regime will require time for adaptation.
The recent initiative by the NBR will help expedite the familiarisation process for taxpayers with the new legislation, which was introduced after 39 years after the enactment of the Income Tax Ordinance 1984.
The NBR chairman said the purpose of the public hearing is not to address grievances, but rather to educate taxpayers and raise awareness among them.
Under the existing integrity strategies of the NBR, there is a system for addressing grievances, where tax officials resolve complaints from taxpayers submitted via email and postal mail.
However, questions have arisen about its effectiveness, as many taxpayers are either unaware of this option or are unwilling to lodge complaints in such a manner.
Previously, there was a 'tax ombudsman' and a 'Tax Settlement Commission', where taxpayers could lodge complaints against any harassment by tax officials.
Both of these systems have been scrapped by the NBR, after raising questions about the efficacy of those bodies.

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