Revenue chief slams black money whitening scheme

Newly appointed Chairman of the National Board of Revenue (NBR) Md Abdur Rahman Khan said he personally considers the black money whitening scheme "totally unacceptable" and it is "indecent and unfair" to regular taxpayers.
"Not as the NBR chairman, but my personal view is that the money whitening scheme is unacceptable as it is like admitting there is corruption going on," he told reporters at his first introductory meeting at the NBR premises on Sunday.
He said honest taxpayers pay taxes regularly throughout their lives, while tax evaders are offered facilities to legalise their wealth at a lower rate.
Mr Rahman said he opposed the scheme during the formulation of the FY 2024-25 national budget and expressed his concerns to government officials, but to no avail.
The revenue board chairman added abolishing the facility will require the approval of the Advisory Council, which cannot be confirmed right now.
The current fiscal year's budget includes a black money whitening scheme with a 15 per cent tax.
He described such schemes as poor practice that has not yielded good returns for the public exchequer.
Responding to press queries, he vowed to crack down on money launderers, following the lead of the Bangladesh Financial Intelligence Unit (BFIU) and other agencies.
"We won't rush but won't sit idly either in identifying these criminals and bringing them to book," he said.
Acknowledging corruption within the revenue board, he pledged to punish those involved.
Earlier on the day, Mr Rahman, in a meeting with tax officials, urged them to treat taxpayers with respect. He asked them to focus on shifting dependencies from indirect to direct tax collection, work towards increasing the tax-to-GDP ratio and prepare materials to educate taxpayers.
Mr Rahman said the tax base remains weak and has primarily been expanded through fiscal measures rather than concerted efforts.
"Three task forces will be formed for the NBR's three wings to work on reforms and help create a business-friendly tax environment," he added.
He acknowledged that the NBR's lengthy disposal processes have been criticised by its field offices, emphasising automation. He said a big project will be undertaken to establish a sustainable automated tax administration.
Addressing the discrepancy in tax revenue collection between the accountant general's office and the NBR, Mr Rahman said he would immediately begin working to resolve the issue. He said tax officials have access to the Integrated Budget And Accounting System (iBAS) system of the Ministry of Finance but many have yet to log in to compile accurate revenue collection data.
"I will ensure zero deviation in tax collection data between the entities," he added.

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