NBR's spot assessment gets wide response
Thursday, 11 November 2010
Doulot Akter Mala
The newly launched spot assessment evoked enthusiasm among the people on payment of income tax as they have found the system hassle-free and easier compared to that which requires one to visit tax offices.
The National Board of Revenue (NBR) has brought thousands of taxpayers under spot assessment in five areas of Dhaka, Chitagong, Sylhet, Khulna and Barisal.
The revenue board has launched spot assessment from November 1 to bring more taxpayers under the tax net.
"We have observed huge enthusiasm among the people on payment of tax in presence of top revenue officials," said income tax member Basir Uddin Ahmed.
People have welcomed the system due to the scope of payment of taxes without hassle, he said.
More than 1100 new taxpayers came under the tax net by way of the spot assessment system, he said.
"We hope the fear factor in marginal taxpayers will be eliminated with the system," he added.
Income tax officials visited different places with one-page tax return and simplified TIN application forms. They have helped the taxpayers to fill up their return forms.
The facilities of paying the same amount of tax for three consecutive years without auditing have attracted the marginal taxpayers to file tax returns under the spot assessment method, the income tax member said.
Officials said the spot assessment drew more attention of the marginal taxpayers than that related to survey activity.
They said the survey method could not bring the taxpayers directly under the tax net due to procedural complexities. Surveyors collect data and place those to the respective tax offices for necessary actions.
It has been found that only 50 per cent of the surveyed people were finally included in tax net due to lack of coordination between surveyors and relevant tax offices.
Last year, the revenue board has found 3, 45,000 new taxpayers through survey but only less than 2, 00,000 came under the tax net.
Five spots across the country were covered in the last seven days with the new system. The NBR team has visited the city's Islampur, Chittagong, Sylhet, Khulna, Barisal.
Potential income taxpayers in businesses with minimum capital up to Tk 0.8 million can pay minimum tax Tk 2,000 for three consecutive years.
Businesses with capital above Tk 0.8 million to Tk 1.0 million is allowed to pay Tk 4,000 income tax under the system.
Physicians and lawyers, whose professional age does not exceed five years, can also avail the facility by paying Tk 2,000 minimum tax for three consecutive years.
Minimum tax is fixed at Tk 4,000 for physicians and lawyers whose professional age is above five years to ten years.
Mandatory rule on payment of Advance Income Tax (AIT) of Tk 1,000 for obtaining Taxpayers Identification Number (TIN) is not applicable to the taxpayers, who will file tax return under spot assessment.
Taxmen expressed their hope in the significant rise of income-tax payers in the current fiscal following the effective strategy.
The country's tax-GDP ratio is only 8.5 per cent of the GDP, which is deemed poor in the South and Southeast Asian region. The government has targeted to raise it to a double-digit figure to reduce dependence on foreign loan and boost internal revenue base.
The newly launched spot assessment evoked enthusiasm among the people on payment of income tax as they have found the system hassle-free and easier compared to that which requires one to visit tax offices.
The National Board of Revenue (NBR) has brought thousands of taxpayers under spot assessment in five areas of Dhaka, Chitagong, Sylhet, Khulna and Barisal.
The revenue board has launched spot assessment from November 1 to bring more taxpayers under the tax net.
"We have observed huge enthusiasm among the people on payment of tax in presence of top revenue officials," said income tax member Basir Uddin Ahmed.
People have welcomed the system due to the scope of payment of taxes without hassle, he said.
More than 1100 new taxpayers came under the tax net by way of the spot assessment system, he said.
"We hope the fear factor in marginal taxpayers will be eliminated with the system," he added.
Income tax officials visited different places with one-page tax return and simplified TIN application forms. They have helped the taxpayers to fill up their return forms.
The facilities of paying the same amount of tax for three consecutive years without auditing have attracted the marginal taxpayers to file tax returns under the spot assessment method, the income tax member said.
Officials said the spot assessment drew more attention of the marginal taxpayers than that related to survey activity.
They said the survey method could not bring the taxpayers directly under the tax net due to procedural complexities. Surveyors collect data and place those to the respective tax offices for necessary actions.
It has been found that only 50 per cent of the surveyed people were finally included in tax net due to lack of coordination between surveyors and relevant tax offices.
Last year, the revenue board has found 3, 45,000 new taxpayers through survey but only less than 2, 00,000 came under the tax net.
Five spots across the country were covered in the last seven days with the new system. The NBR team has visited the city's Islampur, Chittagong, Sylhet, Khulna, Barisal.
Potential income taxpayers in businesses with minimum capital up to Tk 0.8 million can pay minimum tax Tk 2,000 for three consecutive years.
Businesses with capital above Tk 0.8 million to Tk 1.0 million is allowed to pay Tk 4,000 income tax under the system.
Physicians and lawyers, whose professional age does not exceed five years, can also avail the facility by paying Tk 2,000 minimum tax for three consecutive years.
Minimum tax is fixed at Tk 4,000 for physicians and lawyers whose professional age is above five years to ten years.
Mandatory rule on payment of Advance Income Tax (AIT) of Tk 1,000 for obtaining Taxpayers Identification Number (TIN) is not applicable to the taxpayers, who will file tax return under spot assessment.
Taxmen expressed their hope in the significant rise of income-tax payers in the current fiscal following the effective strategy.
The country's tax-GDP ratio is only 8.5 per cent of the GDP, which is deemed poor in the South and Southeast Asian region. The government has targeted to raise it to a double-digit figure to reduce dependence on foreign loan and boost internal revenue base.