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NBR moves to speed up revenue collection

| Updated: April 04, 2021 17:40:17


NBR moves to speed up revenue collection

The National Board of Revenue (NBR) is widening its net and realising outstanding taxes to meet the yearly revenue collection target of the Income Tax Wing, reports UNB.

For the fiscal year 2020-21, the target of Income Tax Wing is to collect Tk 1039.45 billion. But NBR data show that after January of this year, only Tk 408.15 billion or 39.26 per cent of the target was met.

In January last the NBR collected Tk 65.63 billion while it was Tk 61.88 billion in the same month of the previous year. The month-on-month growth is 6.06 per cent.

Till January 2021, the NBR collected Tk 408.15 billion. The amount was Tk 383.27 billion in the corresponding period of last year with a 6.49 per cent growth.

NBR sources said the Board directed the tax commissioners to bring all eligible persons and organisations under the tax net and take initiatives to remove the phobia regarding hassles in tax payment.

It also asked to intensify the tax survey and activate the inactive TIN numbers as the submission of income tax returns have been made mandatory for every TIN holder from this fiscal year.

The Income Tax Wing has already issued directives to field offices in this connection.

As part of the internal survey, the field-level officials are collecting possible taxpayers' information from city corporations, Rajuk and other relevant authorities, and sub-registrar offices.

This is popularly called 'secondary data' which refer to the information of the individuals that are already kept with any organisation.

The NBR also started collecting information of potential taxpayers at the upazila level through secondary data gathering, otherwise known as internal survey. For example, a file of 'X' company mentioned that it has 450 employees. The official concerned can ask for the names of the 450 employees and their TIN numbers.

"This is called internal survey," a senior NBR official explained. The official said that at first, the NBR was taking information on the trade licences issued from the city corporations and municipalities.

Later, TINs would be issued in their names to bring them under tax net and collect revenue from them.

Besides, he mentioned that NBR was collecting information of foreigners from Bangladesh Investment Development Authority (BIDA), vehicle owners from the BRTA, land buying and selling information from the sub-registry offices, power distribution offices and service-oriented offices.

Information of flat and house owners was also being collected from the National Housing Authority, the NBR official said. All these efforts would help NBR identify eligible taxpayers who are still out of tax net.

"We hope that this'll help us raise revenue collection," he added.

NBR sources said the board officials generally collect information of potential taxpayers by a door-to-door survey. This is how they find out new taxpayers.

A senior official of the NBR said that the field officials have been asked to conduct their survey maintaining health safety rules.

According to an official document, at the end of the 7th Five Year Plan, which ended on June 2020, the revenue-GDP ratio was to be 16.1 per cent in 2019-20 fiscal after gradual improvement, but the achievement was estimated at 12.7 per cent while it was 9.9 per cent and 9.6 per cent in 2018-19 and 2017-18 fiscals respectively.

The total revenue collection for the budget for 2020-21 fiscal was set at Tk 3,780 billion where the NBR will contribute Tk 3,300 billion. The revenue from non-NBR sources was estimated at Tk 150 billion, while non-tax revenue at Tk 330 billion.

Of the grand amount for the NBR, Tk 1,039.45 billion will come from income, profit and capital tax, while Tk 1,251.62 billion will be contributed by VAT.

Supplementary tax will provide Tk 578.15 billion and Tk 378.07 billion will come from import duty. Tk 0.55 billion will come from export duty while Tk 36.86 billion from excise duty and Tk 15.30 billion as other taxes.

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