Universal self-assessment gains popularity among taxpayers
Sunday, 2 November 2008
Doulot Akter Mala
Universal self-assessment method of paying taxes has gained popularity this year. Individual taxpayers are exercising the freedom to pay any amount of tax consistent with their earnings and expenditures and are also they facing less harassment because the discretionary powers of taxmen have been curtailed.
The universal self-assessment method was introduced from last fiscal year to enable individual taxpayers to assess their own incomes and expenditures and submit taxes accordingly without taking assistance from tax practitioners and middlemen.
According to National Board of Revenue (NBR) figures on submission of individual tax returns, a total of 0.64 million taxpayers paid Tk 7.39 billion tax in 2007-08 tax year. Of the amount, tax worth Tk 3.74 billion were deposited by general taxpayers while self-assessment taxpayers paid Tk 1.92 billion and universal self-assessment taxpayers paid Tk 1.71 billion.
While visiting some tax offices in the city, it was found that this year most of the income tax returns were submitted under the system through which there is less possibility of being harassed and no questions raised by the taxmen.
"Only 0.25 per cent of the person came under general tax submission method while rest of all have chosen the universal self assessment system," said a tax commissioner.
Taxpayers are paying taxes more comfortably as there is little scope of negotiation and bargaining on actual tax payment, he said.
Asked whether they found the trend of showing less income than that of last year under this method, he said: "As the new measure was introduced to encourage voluntary submission of tax returns, the government will have to relax some of the rules on auditing for the first two or three years."
At the time of introduction of the system, the NBR has promised that it will unconditionally accept whatever amount of tax is paid by the taxpayers under it, he said adding that "We will have to trust the taxpayers to encourage them to pay taxes."
Tax offices are entitled to audit only 10 per cent tax files at random, not all, of such tax returns after obtaining approval of the board.
Only selected tax files, which the taxmen are confirmed about tax evasion, would be scrutinised with the permission of NBR.
Meanwhile, the NBR is seeing light of hope to maintain the growth rate of income tax collection as it has been receiving higher response from the individual taxpayers in the last two days.
Revenue officials said that number of tax returns might reach to 0.7 million if this trend continues into the last week.
Top revenue officials Thursday visited a number of tax offices in the city. They have noticed a last minute rush of the taxpayers both for declaring undisclosed income and individuals tax returns.
Universal self-assessment method of paying taxes has gained popularity this year. Individual taxpayers are exercising the freedom to pay any amount of tax consistent with their earnings and expenditures and are also they facing less harassment because the discretionary powers of taxmen have been curtailed.
The universal self-assessment method was introduced from last fiscal year to enable individual taxpayers to assess their own incomes and expenditures and submit taxes accordingly without taking assistance from tax practitioners and middlemen.
According to National Board of Revenue (NBR) figures on submission of individual tax returns, a total of 0.64 million taxpayers paid Tk 7.39 billion tax in 2007-08 tax year. Of the amount, tax worth Tk 3.74 billion were deposited by general taxpayers while self-assessment taxpayers paid Tk 1.92 billion and universal self-assessment taxpayers paid Tk 1.71 billion.
While visiting some tax offices in the city, it was found that this year most of the income tax returns were submitted under the system through which there is less possibility of being harassed and no questions raised by the taxmen.
"Only 0.25 per cent of the person came under general tax submission method while rest of all have chosen the universal self assessment system," said a tax commissioner.
Taxpayers are paying taxes more comfortably as there is little scope of negotiation and bargaining on actual tax payment, he said.
Asked whether they found the trend of showing less income than that of last year under this method, he said: "As the new measure was introduced to encourage voluntary submission of tax returns, the government will have to relax some of the rules on auditing for the first two or three years."
At the time of introduction of the system, the NBR has promised that it will unconditionally accept whatever amount of tax is paid by the taxpayers under it, he said adding that "We will have to trust the taxpayers to encourage them to pay taxes."
Tax offices are entitled to audit only 10 per cent tax files at random, not all, of such tax returns after obtaining approval of the board.
Only selected tax files, which the taxmen are confirmed about tax evasion, would be scrutinised with the permission of NBR.
Meanwhile, the NBR is seeing light of hope to maintain the growth rate of income tax collection as it has been receiving higher response from the individual taxpayers in the last two days.
Revenue officials said that number of tax returns might reach to 0.7 million if this trend continues into the last week.
Top revenue officials Thursday visited a number of tax offices in the city. They have noticed a last minute rush of the taxpayers both for declaring undisclosed income and individuals tax returns.