NBR won't do anything to harm stock market, says chairman
Monday, 20 August 2007
FE Report
Chairman of the National Board of Revenue (NBR) Badiur Rahman assured Sunday that the Board would not take any measure that might affect the booming share market.
The NBR chairman was replying to a question at a discussion meeting organised by the Bangladesh Economic Association (BEA) at the Jatiya Press Club.
On imposition of 10 per cent tax at source on interest income from savings instrument, he said small savers, who are entirely dependent on such earning, might be exempted from the tax in the next fiscal (2008-09) provided their total earning does not exceed the tax ceiling.
Pointing to poor tax revenue earning, the NBR chairman said the country would not have to take the services of the external relations division (ERD) if taxmen could collect tax properly. He said the country has to satisfy donors' preconditions to ensure disbursement of loans.
President of the BEA Qazi Kholiquzzaman said: "We receive remittances to the tune of $ 6.0 billion a year but the government has to meet a number of pre-conditions to get foreign assistance of only $ 1.2 billion."
NBR chairman said: "The NBR could not play its role properly to make the people tax compliant". He also admitted that taxpayers were still being harassed.
An ongoing survey of the NBR has found that about 57 per cent businesses do not have taxpayers' identification number (TIN).
Citing the tax-GDP ratio of neighbouring Nepal at around 14 per cent, the NBR chief said Bangladesh is striving to achieve the same at about 10.08 peer cent in the current fiscal.
BEA general secretary Abul Barakat said a section of people are misguiding some taxpayers asking them not to disclose their income to avoid hassles of tax payment.
He estimated that the number of persons eligible for tax payment would be about 6.0 million.
Barakat said: "The government could collect tax to the tune of Tk. 600 billion from an estimated accumulated undisclosed income of about Tk. 2000 billion."
The country would not have to depend on foreign assistance if it could collect tax properly from all the undisclosed money holders, he said.
The NBR chairman said: "We have introduced three Ds as a part of our tax reform programme. They are: delivery of service, discretionary power-cut and discriminatory treatment-cut."
This year, he said, the government has simplified tax payment system by introducing easy tax return form, unified taxpayers identification number and universal self-assessment system.
If the NBR finds these measures successful, it would make the procedure of tax payment easier in the next fiscal, he said adding, the main objective of the reform of the tax administration is to encourage the people to pay tax willingly.
Besides, the NBR has extended the deadline for legalising undisclosed money, earned through fair means, with payment of 5.0 per cent penal tax in additional to the normal rate of tax by September 30 next.
"Individuals, accused for tax evasion, however, will not be entitled to avail themselves of the opportunity," the NBR chief said.
The board, so far, collected tax worth Tk 4.23 billion from Tk 23 billion undisclosed money.
The NBR chairman also said the government will incur a revenue loss of Tk 480 million for raising the tax ceiling from Tk 120000 to 150000 in the current fiscal.
UNB adds: The NBR chairman termed unethical the BNP led alliance government's opportunity to whiten the black money.
"The opportunity was not based on ethics," he said while defending the present offer to legalise undeclared money earn though legal means.
"Why should the taxpayers pay higher amount than the non-taxpayers, who earn their money through unfair means. Legalising undeclared money irrespective of their sources at a rate of 7.5 percent was not based on ethics," he said.
The alliance government had given the opportunity to whiten undeclared money, popularly known as black money, whether it is earned through legal or illegal means, at the rate of 7.5 percent tax.
An amount of Tk 4,603 crore had been legalized taking advantage of pecuniary the offer in the fiscal 2005-06. Some 7,246 people had availed of the opportunity by paying Tk 345.225 crore to the national exchequer.
Some 2.1 million people have TIN but only one million submit income tax return.
Badiur Rahman advised the taxpayers to refrain from going to income tax lawyers. "If anyone find complexity to fill income tax return form, please come to us, we will do that for you," he said.
He admitted that it is tough to make immediate reform in the tax administration. "But I can say that it will be done obviously and we are working towards that."
He had a word of caution against the tax officials. "If anyone is found guilty he will be suspended immediately."
On reform of tax he said it would come automatically if the taxpayers pay taxes willingly. "No reform can be done though enacting laws, there is no law above the own conscience," he added.
Chairman of the National Board of Revenue (NBR) Badiur Rahman assured Sunday that the Board would not take any measure that might affect the booming share market.
The NBR chairman was replying to a question at a discussion meeting organised by the Bangladesh Economic Association (BEA) at the Jatiya Press Club.
On imposition of 10 per cent tax at source on interest income from savings instrument, he said small savers, who are entirely dependent on such earning, might be exempted from the tax in the next fiscal (2008-09) provided their total earning does not exceed the tax ceiling.
Pointing to poor tax revenue earning, the NBR chairman said the country would not have to take the services of the external relations division (ERD) if taxmen could collect tax properly. He said the country has to satisfy donors' preconditions to ensure disbursement of loans.
President of the BEA Qazi Kholiquzzaman said: "We receive remittances to the tune of $ 6.0 billion a year but the government has to meet a number of pre-conditions to get foreign assistance of only $ 1.2 billion."
NBR chairman said: "The NBR could not play its role properly to make the people tax compliant". He also admitted that taxpayers were still being harassed.
An ongoing survey of the NBR has found that about 57 per cent businesses do not have taxpayers' identification number (TIN).
Citing the tax-GDP ratio of neighbouring Nepal at around 14 per cent, the NBR chief said Bangladesh is striving to achieve the same at about 10.08 peer cent in the current fiscal.
BEA general secretary Abul Barakat said a section of people are misguiding some taxpayers asking them not to disclose their income to avoid hassles of tax payment.
He estimated that the number of persons eligible for tax payment would be about 6.0 million.
Barakat said: "The government could collect tax to the tune of Tk. 600 billion from an estimated accumulated undisclosed income of about Tk. 2000 billion."
The country would not have to depend on foreign assistance if it could collect tax properly from all the undisclosed money holders, he said.
The NBR chairman said: "We have introduced three Ds as a part of our tax reform programme. They are: delivery of service, discretionary power-cut and discriminatory treatment-cut."
This year, he said, the government has simplified tax payment system by introducing easy tax return form, unified taxpayers identification number and universal self-assessment system.
If the NBR finds these measures successful, it would make the procedure of tax payment easier in the next fiscal, he said adding, the main objective of the reform of the tax administration is to encourage the people to pay tax willingly.
Besides, the NBR has extended the deadline for legalising undisclosed money, earned through fair means, with payment of 5.0 per cent penal tax in additional to the normal rate of tax by September 30 next.
"Individuals, accused for tax evasion, however, will not be entitled to avail themselves of the opportunity," the NBR chief said.
The board, so far, collected tax worth Tk 4.23 billion from Tk 23 billion undisclosed money.
The NBR chairman also said the government will incur a revenue loss of Tk 480 million for raising the tax ceiling from Tk 120000 to 150000 in the current fiscal.
UNB adds: The NBR chairman termed unethical the BNP led alliance government's opportunity to whiten the black money.
"The opportunity was not based on ethics," he said while defending the present offer to legalise undeclared money earn though legal means.
"Why should the taxpayers pay higher amount than the non-taxpayers, who earn their money through unfair means. Legalising undeclared money irrespective of their sources at a rate of 7.5 percent was not based on ethics," he said.
The alliance government had given the opportunity to whiten undeclared money, popularly known as black money, whether it is earned through legal or illegal means, at the rate of 7.5 percent tax.
An amount of Tk 4,603 crore had been legalized taking advantage of pecuniary the offer in the fiscal 2005-06. Some 7,246 people had availed of the opportunity by paying Tk 345.225 crore to the national exchequer.
Some 2.1 million people have TIN but only one million submit income tax return.
Badiur Rahman advised the taxpayers to refrain from going to income tax lawyers. "If anyone find complexity to fill income tax return form, please come to us, we will do that for you," he said.
He admitted that it is tough to make immediate reform in the tax administration. "But I can say that it will be done obviously and we are working towards that."
He had a word of caution against the tax officials. "If anyone is found guilty he will be suspended immediately."
On reform of tax he said it would come automatically if the taxpayers pay taxes willingly. "No reform can be done though enacting laws, there is no law above the own conscience," he added.