National Board of Revenue (NBR)
NBR to install 10,000 EFD to prevent VAT evasion
The National Board of Revenue (NBR) will install 10,000 Electronic Fiscal Devices (EFDs) in Dhaka, Chattogram and other big cities in the fiscal year 2022-23 in a bid to prevent Value Added Tax(VAT) evasion. Finance minister AHM Mustafa Kamal in the proposed budget of 2022-23 kept an allocation to install EFDs in different chain and super shops. Also read: NBR slaps additional duty on 135 luxury items to discourage import EFD is an improved version of Electronic Cash Register or ECR, which is imported by the NBR. If EFD is used in business, VAT money will be automatically transferred to the main server of NBR. In this system, the traders cannot hide the sale information and the real information of daily transactions will be transferred to the NBR server which will help to reduce fraud, NBR sources said. In the budget speech, the finance minister said, "In order to increase revenue collection in various types of retail and wholesale businesses, two years ago, in the budget of 2020-21, for the first time, a state-of-the-art electronic fiscal device system was introduced." Since then 4,595 machines have been installed. A total of 10,000 EFD machines are planned to be installed in various businesses by June 2023. "We are in the process of setting up the machine through outsourcing as well as keeping the programme running. As a result of this step, I hope that the collection of VAT will reach the desired level by 2026,” he added. In this year's budget, the target for total revenue collection through NBR is Tk 3.70 lakh crore. Of this, Tk1.36 crore will come from VAT, which is 37 percent of the total collection. Also read:Income Tax Wing of NBR racing to meet target in last 4 months of fiscal Officials at the NBR's VAT department said huge amounts of VAT are evaded at the retail and wholesale levels. Revenue earning will be increased all retail and wholesale businesses are brought under the machine system, they said.
NBR slaps additional duty on 135 luxury items to discourage import
The National Board of Revenue (NBR) has imposed addtional duty on 135 foreign products - from fruits to flowers - to discourage their imports and ease pressure on forex reserves. The NBR notification stated that 20 per cent regulatory import duty has been slapped on over135 HS-coded products such as foreign fruits, foreign flowers, furniture and cosmetics effective from Monday. Also read: Income Tax Wing of NBR racing to meet target in last 4 months of fiscal The much anticipated move is likely to discourage import of the expensive products and ease the pressure on foreign exchange reserves. The revenue authority said said Bangladesh is doing well in flower and fruit cultivation. The additional import duty will help flower and fruit growers get fair price. The new regulatory duty applies to the following: Flower and flower products: Any type of imported flowers, fresh and dried, imported flowers for making ornaments, various types of artificial flowers and tree saplings or tree branches. Fruits include: Fresh or processed mango, banana, grape, fig, pineapple, avocado, guava, mangosteen or cabbage, lemon, watermelon, plum, apricot, cherry fruit, frozen or processed fruit seed and mixed fruit food. Imported bamboo for furniture, parts, cane furniture and various imported materials for furniture. Also wooden furniture used in office, kitchen, bedroom, plastic furniture and various metal furniture. Also read: NBR to speed up this fiscal's VAT collection Cosmetics products include perfume, beauty and makeup preparation, tooth floss, tooth powder, preservative and after shave cosmetics, hair cosmetics etc. At present, regulatory duty or RD is applicable on 3,408 products at the import stage. RD is applicable on these products from minimum 3 per cent to maximum 35 percent. This includes high tariffs on items classified as non-essential and luxury items.
NBR may miss revenue target Tk 3.30 trillion this year too
The National Board of Revenue (NBR) may miss the fiscal revenue collection target as about half of the revenue collection is yet to be done with only four months left of the current financial year. Latest NBR data shows that the revenue board has collected Tk1.76 lakh crore in eight months July-February period. It means that Tk 1.53 lakh crore of revenue collection still remaining and the board is far from FY2021-22 revenue collection target of Tk 3.30 lakh crore. Also read: NBR works for win-win tax in upcoming budget: Finance Minister The official documents showed that the revenue board has to collect Tk38,385 crore in each month in the remaining four months (March-June) which is quite impossible and not happened earlier, the NBR data shows. The NBR has submitted a revised revenue collection plan with a target ofTk 3.05 lakh crore to reduce the gap between the target and achievement at the end of the fiscal year. If the ministry of finance approves the revised revenue collection plan, the revenue board has to collect Tk 32,000 crore per month on an average in the remaining (March-June) period. Despite 10.65 percent growth in revenue collection so far, the NBR may fail to reach the top of the target. Also read: Consider maximum cut in import VAT on edible oil: Cabinet directs NBR The revenue collection has jumped to Tk2.66 lakh crore in last FY2020-21) in place of the target of Tk3.30 crore that later was revised to Tk 3.0 lakh crore. The NBR collects revenue in the form of income tax, travel tax, customs duty; value added tax, supplementary duty (SD) and excise duty.
NBR works for win-win tax in upcoming budget: Finance Minister
Finance Minister AHM Mustafa Kamal on Tuesday said the government focused on increasing revenue from direct tax to give relief to lower income people from the tax burden. Under this system those who earn more pay more taxes, he told the 42nd consultant meeting of National Board of Revenue (NBR) ahead of national budget for FY2022-23 at a local hotel. He assured that no one will be unfairly burdened as NBR is considering a win-win tax rate in the upcoming national budget. Read: Consider maximum cut in import VAT on edible oil: Cabinet directs NBR Kamal said the government’s revenue collection increased by 8 times in the last 13 years and the volume of revenue was Tk2.59 lakh crore (Tk2.59 trillion- 1 trillion= 1 lakh crore) in the last FY2020-21. He said the businesses are contributing to the country’s development including construction of Padma Bridge by providing tax. The government wants to expand tax net rather than increasing tax rate to force a competitive business environment, he said. NBR Chairman Abu Hena Md. Rahmatul Muneem, President of the Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) Md. Jasim Uddin, Vice presidents, and different chamber leaders spoke in the function.
HC allows Evaly to withdraw Tk 2.35 cr for operating expenses
The High Court on Sunday allowed its appointed board of directors for disgraced e-commerce company Evaly to withdraw Tk 2.35 crore deposited at City Bank and Southeast Bank for operating expenses. A single HC bench of Justice Muhamad Khurshid Alam Sarkar passed the order following the application submitted by the board of directors of Evaly, that was formed on the direction of the court. Read: Evaly scam: Mithila, Faria get anticipatory bail The court also directed Bangladesh Bank and National Board of Revenue (NBR) to submit details on expenditures logged by Evaly’s former chief executive officer Mohammad Rassel and Chairperson Shamima Nasrin. At the same time, 22 vehicles registered by Evaly have been allowed to be rented or sold. Barrister Morshed Ahmed Khan appeared for Evaly board while Barrister Syed Mahsib Hossain for the writ petition. Barrister Syed Mahsib Hossain said the board of directors of Evaly could not withdraw any money from the bank accounts as Bangladesh Financial Intelligence Unit (BFIU) froze all the accounts of Evaly. On October 18 last year, the High Court formed a 5-member board, led by former justice Shamsuddin Chowdhury Manik, to manage, control and assess the liabilities of shuttered e-commerce platform Evaly. Other members of the board are former secretary Mohammad Rezaul Ahsan and additional secretary Mahbub Kabir Milon, chartered accountant Fakhruddin Ahmed and lawyer Barrister Khan Mohammad Shamim Aziz. Evaly CEO Mohammad Rassel and his wife Shamima Nasrin, the chairman of the platform were arrested on September 16, after a customer named Arif Baker filed a case at Gulshan Police Station alleging that e-commerce platform was not delivering products despite taking advanced payments. Read: Barishal court summons Evaly CEO Rassel in 3 cases of cheque fraud Meanwhile customer Farhad Hossain submitted an application at the High Court seeking dissolution of the beleaguered company and direction on forming a board of directors for the company. On September 22, the High Court ordered a ban on the sale and transfer of movable and immovable property during a hearing on the application and issued a notice questioning why Evaly will not be disbanded. On September 30, during a hearing in this regard the HC directed the Registrar of Joint Stock Companies and Firms (RJSC) to submit all the documents of Evaly within October 11.
Banks cut excise duty from customers’ account in December
As per the government’s directive, banks have deducted excise duty from customers’ accounts whose minimum balance reached Tk one lakh within 2021. If the balance of customers’ bank accounts reached Tk one lakh within the year, banks would cut minimum excise duty ofTk150. Read: Social Islami Bank official sued by ACC According to the instruction, the banks have been deducting the excise duty from the calendar year (January-December), on behalf of the National Board of Revenue (NBR). It is then deposited in the government treasury. This year too it has been done. After deducting the duty, they deposited it in the government treasury. Last year (2020), NBR collected excise duty around Tk 2,500 crore. At present, the excise duty rate for Tk one lakh to Tk five lakh is Tk 150, Tk five lakh to Tk 10 lakh is Tk 500. Read:Credit guarantee scheme: IFC, Bangladesh Bank sign deal to support Covid-hit small businesses Besides, excise duty of Tk 10 lakh to Tk 1.0 crore is Tk 3,000, while the duty is fixed at Tk 15000 for the amount of customers’ bank accounts between Tk one crore to Tk five crore. The NBR imposed the excise duty of Tk 40,000 for the amount of Tk five crore onward.
Tax return submission: Half the TIN holders may miss the November 30 deadline
At least half the country’s TIN holders are likely to miss the November 30 deadline to submit their tax returns amid experts’ call to the National Board of Revenue (NBR) to go for a more bold and people-friendly tax collection campaign. Speaking on condition of anonymity a senior NBR official told UNB that the pace of manually submitted returns has been slow. He said he can’t disclose how many people submitted their returns manually until November 27, 2021. He, however, said some 33,653 taxpayers submitted their tax returns until Saturday (November 27) using the newly-launched eReturn system and a total of 71,500 taxpayers have registered digitally. Read: People’s interest in paying tax is growing in Bangladesh: Finance Minister The digital system ensured that there is no harassment, no bribe or no delay in issuing acknowledgement of tax certificates. A team of tax officials developed the system using the board's own resources. “The returns submission will take place on the last two days of November as usual like previous years and the number may not be less than the last year,” the official added. Some regular taxpayers complained that they did not get timely messages from NBR. Talking to UNB Abbas Uddin, a college teacher said, “I have been paying taxes for the past 11 years. I did not get any message from NBR.” When told of this complaint NBR member (tax policy) Md. Alamgir Hossain said that tax commissioner offices are organizing digital campaign in areas by sending SMS to the taxpayers Besides, NBR is using several media outlets to send out the information about tax return submissions, he said. He advised people to submit returns within the deadline otherwise they would have to explain the delay to the NBR through applications and pay extra fees for late submissions.
NBR urged to withdraw, slash duties on 4 essential items
The Ministry of Commerce has urged the National Board of Revenue (NBR) to withdraw customs duty on onion import, aiming to keep its price stable in the market. The ministry also urged the NBR to slash import duties on crude soybean oil, palm oil and sugar to cool the overheated domestic market. Read:Price hike in Bangladesh: Unseen sufferings of shy middle class The request was made at a meeting of the Ministry of Commerce at the Secretariat on Monday to keep the stock, supply, import and price situation of the commodities stable. “NBR has been requested to withdraw the import duty on onion, and reduce the duties on crude soybean, palm oil and unrefined sugar in public interest,” additional secretary to Import and Internal Trade division of the Commerce Ministry AHM Safiquzzaman said at the meeting.
Export-import tax above Tk2 lakh can be paid online from July 1
The National Board of Revenue (NBR) will receive the tax of export-import oriented trade through e-payment system from July 1 this year if the amount is above Tk 2 lakh.
VAT collection set to take hit as COVID-19 ravaged businesses
The collection of Value Added Tax (VAT), which contributes 37 percent to the total revenue collection, is experiencing the worst-ever scenario due to the COVID-19 impacts that halted trade and business in the country for a couple of months.