Taxpayers face quandary as NBR online portal not ready

The online portal is not ready yet, offline services are off-limits too, and the revenue authority is still scrambling to grasp the changes in collection rules: this is exactly what happens when a new tax law, incorporating stringent measures, catches the revenue collector off guard.
This chaos has left both individual and corporate taxpayers perplexed, as their return submission deadlines are approaching; and unlike previous years, there will be no time extensions this time.
Starting this fiscal year, the National Board of Revenue (NBR), as per the new income tax law, will not allow any expenditure claims -- be it tax rebates or tax exemptions -- for taxpayers who fail to submit tax returns by the given deadlines.
The deadline for return submission by individual taxpayers is November 30, 2023, while it varies for corporates, having two separate deadlines: June 30 and December 31.
The time for tax return submission for individual taxpayers started on July 1, 2023. Taxpayers who want to submit tax returns now found no way to file online returns or seek help from the Tax Service Centre as both operations remained suspended.
It is a common practice for the NBR to activate the online tax return portal in the last month of the tax return submission deadline for individuals. However, there is no such online tax return submission facility for corporate taxpayers.
Tax experts have recommended reinstating the provision of the previous Income Tax Ordinance-1984, which allowed taxpayers to seek a time extension and submit tax returns by paying a nominal penalty.
Even some senior tax officials have opined that the fiscal measure should not be imposed immediately from the current fiscal year, as the NBR has yet to prepare itself for its imposition.
A senior tax official said the concerned wing of NBR could not finalise work on the online tax return portal by updating the system to align with the new tax law, which came into force on July 1, 2023, as the tax authority is still amending the tax measures.
He said such frequent changes in the tax provisions are the major reason for the delay in completing the online tax return forms.
"We have to incorporate a system for auto tax computation in the online form, which seems difficult if the legal provisions change frequently by reducing tax rates or amending compliance provisions," he added.
Tax experts said the NBR should consider allowing a grace period for the taxpayers, especially for individuals, for this fiscal year, as taxpayers also need time to adapt to the new tax provisions.
Md Humayun Kabir, past president, council member, and chairman of the Taxation and Corporate Laws Committee of the Institute of Chartered Accountants of Bangladesh (ICAB), said it has become a culture to seek time for submitting returns after the deadline, which may not end immediately.
"The law should be framed in a manner to ensure comfort in complying with the provisions, not as burdensome. The previous provisions allowing taxpayers to seek time extensions were perfect and could be reinstated," he added.
He, however, appreciated the NBR's effort to compel taxpayers to comply with the deadline and also suggested amendments, if considered, after November 30, 2023, observing the response to the measure.
Even then, it would be difficult for tax officials to manage the huge influx of tax returns in a short amount of time, especially considering the limited infrastructure, manpower and logistical facilities, he added.
Senior tax officials have also recognised the necessity to adopt a flexible policy for taxpayers, taking into consideration the existing limitations of the NBR.
The new income tax law does not include any provision for time extensions. Taxpayers will be able to submit tax returns at any time starting this year. However, tax liability will increase significantly in case of failure to submit tax returns within the deadline.
Former president of Dhaka Chamber of Commerce and Industry (DCCI) Rizwan Rahman said the time frame for submission of tax return by individual taxpayers is quite enough (July to November) to comply with the deadline if supporting facilities are ensured.
"It would be unjust to impose such high penalty without ensuring online tax return platform and other service delivery," he added.
Online tax return forms were launched last year in a partial manner with no interconnectivity between source tax deducting authorities. Since the majority of taxpayers have bank accounts and pay different types of source taxes, the tax return portal was not usable for them.
Last year, some 244,481 taxpayers submitted online tax returns, paying Tk 122 million in taxes, out of 3.6 million taxpayers who submitted tax returns.
Mamun Joarder, an accountant at a travel agency in the city, commented that digital Bangladesh has not provided taxpayers with a convenient way to submit tax returns online.
He said many avoid visiting tax offices in person out of fear of harassment and to avoid incurring additional expenses.
According to Joarder, the contributors to internal revenue for the public exchequer are deprived of basic facilities for tax payment, despite the government's vision to build a Smart Bangladesh by 2041.
The government's main focus is on direct taxation in order to reduce income inequality and decrease dependence on revenue from imports for trade facilitation.
However, direct taxpayers are the most underserved group, as they do not receive any essential services online, except for obtaining an online Taxpayer Identification Number (TIN).

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