NBR
Black money whitening got little response in FY 22: NBR data
The number of black money holders paying taxes under an amnesty decreased by 80.83 per cent to 2300 in the FY2021-22 down from12000 in the previous fiscal year, according to latest NBR data available on Monday
In the last financial year, there was an opportunity to whiten all kinds of black money by combining the stock market, land-flat purchases, and the money kept in the bank.
But at the end of the year, it was found that despite the opportunity, only 2,300 taxpayers came forward.
Also read: Whitening black money: Stock exchanges ask NBR to continue it in stock market
The poor response is attributed to higher tax rates imposed last year.
In the FY21, the tax rate was only 10 per cent compared to 25 per cent in the FY 22.
Besides 5 per cent penalty on that tax had to be paid to whiten black money. As a result, the total tax rate stood at 26.25 per cent.
Also read: NBR dreams to cross revenue Tk3.0 lakh crore in FY 22
A top official of the National Board of Revenue (NBR) said that the response was low due to this.
Dr Iftekharuzzaman, executive director of Transparency International Bangladesh (TIB), told UNB that giving such an opportunity is unethical, discriminatory and against the constitution.
It proved that little was gained from such opportunities given at the expense of morality, he said.
Such opportunities provide protection only to the corrupt and encourage corruption, said the TIB chief.
Read Finance bill 2022 passed with limits on proposal to whiten black money
NBR supports Made in Bangladesh brand: Chairman
The National Board of Revenue is supporting growth of local industries to promote economic development and create more jobs, said its chairman Abu Hena Md Rahmatul Muneem on Sunday.
He was speaking at a press conference at the NBR Bhaban, to highlight the contribution of the revenue board to the national development.
Through policy measures and tax incentives, NBR is encouraging ‘Made in Bangladesh’ along with the expansion of domestic industries and employment, he said.
This will be continued even if some particular sectors are getting 10 years tax holiday facility, he said.
Also read: NBR dreams to cross revenue Tk3.0 lakh crore in FY 22
Now, the revenue board earns 33 per cent of revenue from income tax, 38 per cent from Value Added Tax (VAT), and 28 per cent from import duty excise duty.
“We are planning to extent tax net and VAT collection areas along with monitoring its submission to the treasury,” Muneem said.
The NBR is achieveing 7 per cent growth in revenue collection. The country’s GDP size has become Tk4,449,919 crore in FY2022-23, a rise by 556 per cent compared to Tk 797,538 crore in FY2009-10, he said.
The NBR Chairman said that NBR achieved satisfactory growth in the revenue collection in FY 22, with collection of Tk3.16 lakh crore.
Also read: NBR to install 10,000 EFD to prevent VAT evasion
In FY-11 (2010-11) the NBR’s revenue collection was Tk79403 crore which now stands at Tk 3.16 lakh crore. This jump in revenue earning contributed to implementing the annual development program (ADP). At the same time it helped cut dependency on foreign loans, Muneem said.
At present, NBR is supporting 85 per cent of the budget from internal resources. Both the ADP size and foreign dependency on ADP implementation came down over the years as the impact of people's contribution to revenue, he said.
In FY2010-11 the size of ADP was Tk35,880 crore which now climbed to Tk 217175 crore in FY 2021-22. Similarly, the contribution of revenue increased in ADP implementation and the ratio of foreign loans in the ADP implementation decreased, the NBR chief said.
NBR members and senior revenue officials were present at the press conference.
NBR dreams to cross revenue Tk3.0 lakh crore in FY 22
The revenue collection of National Board of Revenue (NBR) has increased by 14 per cent to Tk 2.96 lakh crore in the fiscal year ending June 30, according to official data.
The earning is close to the NBR’s dream target of collecting Tk 3 lakh crore in a fiscal year.
The increase is attributed to growth in the volume of both export and import of the country.
Though the revenue generation increased by 14 per cent in FY 22, NBR missed to reach the fiscal target of Tk3.30 lakh crore. But the NBR collected revenue of Tk 36,000 crore more than the previous FY 21.
Also Read: NBR to install 10000 EFD to prevent VAT evasion
In FY 21, the NBR collected revenue around Tk2.60 lakh crore from income tax, Value added Tax (VAT) and customs duty against the revised target of Tk 3.1 lakh crore.
The Customs House, Chattogram has collected Tk 59,256 crore, which is the highest while another large Customs House in Benapole collected Tk 4,599 crore in the just-gone fiscal year.
The highest VAT has been collected by the Large Taxpayer Unit (LTU). The LTU unit has collected Tk 50,000 crore and LTU (income tax) department collected around Tk 25,000 crore.
The NBR officials said, businesses will submit VAT returns by July 15 around Tk 20,00 crore to 2500 crore.
Besides, the NBR hopes to realize VAT of several thousand crore which remains unrealized at some state-owned entities.
The revenue officials are expecting that the revenue collection will cross Tk 3.0 lakh crore in FY 22, if a portion of VAT is realized from the state-owned entities.
Focus on extending tax net to enhance Tax-GDP ratio: ICAB
The Institute of Chartered Accountants of Bangladesh (ICAB) on Saturday in a budget reaction said more initiatives are required to extend the tax net for increasing tax-GDP ratio in the country.
The ICAB and the National Board of Revenue (NBR) can work together to verify company documents on income tax return issues which will help the government to achieve the fiscal revenue collection target, ICAB leaders said.
The ICAB said this in a press conference for a formal reaction on the proposed budget, held at CA Building at Karwan Bazar in the capital.
Also read: Budget: Dr Atiur for reconsidering some tax proposals
Md. Shahadat Hossain FCA, president ICAB, Md. Humayun Kabir FCA, ex-president, ICAB, and Shubhasish Bose, CEO of ICAB, spoke at the function.
The ICAB thanked Finance Minister AHM Mustafa Kamal for receiving almost all proposals of the institution on supplementary duty, tax and VAT related issues.
Reduction of the ratio of source tax and its field, tax reduction for specific companies in special rate are appreciated in the proposed budget.
Separate policy and regulation for start-up business will attract the generation to start innovative business, said ICAB.
The ICAB leaders also said changing revenue policy for some sectors will encourage export variation, which is needed to increase export volume of Bangladesh.
“Input Tax Credit on Business Services Proposal to reduce fines from 100 percent to 50 percent and maximum 100 percent, to perform operations electronically in a bonded warehouse - These topics are up-to-date and business friendly,” said ICAB in the budget reaction.
Also read: Budget FY23: Laundered money to be legalized by 7-15 pc tax
Md. Shahadat Hossain FCA, president ICAB, Md. Humayun Kabir FCA, ex-president, ICAB, Shubhasish Bose, CEO of ICAB, spoke at the function.
NKA Mobin FCA, Sabbir Ahmed FCA, Md, Abdul Kader Joarddar FCA, Snehasish Barua FCA, Mahbub Ahmed Siddique FCA, among others, present in the press conference.
Income Tax Wing of NBR racing to meet target in last 4 months of fiscal
The National Board of Revenue (NBR) has taken a tougher move to increase its collection from the Income Tax Wing by expanding its net and realising outstanding taxes, as in the first eight months of the current fiscal it collected just over 50 percent of its target for the fiscal.
The revenue collection target from the Income Tax Wing for the 2020-21 fiscal is Tk 103,945.10 crore. But, according to available data from the NBR, till February of this year the wing has been able to collect only Tk 52,854.37 crore. It means the rest, an almost equal amount of Tk 51,090.7 crore, has to be collected in just 4 months.
In February, the 8th month of the fiscal, the NBR collected Tk 6,446.87 crore, almost 10 percent more than the corresponding month in 2021, when it collected Tk 5882.03.
The collection in the first 8 months of the current fiscal, is 13.3 percent higher than what it was in the first 8 months of the last fiscal.
According to the NBR sources, the Board has directed the tax commissioners to bring all eligible persons and organisations under the tax net and to take initiatives to remove the phobia regarding hassle in tax payment.
It also asked to intensify the tax survey and activate the inactive TIN numbers as submitting income tax return has been made mandatory for every TIN holder from this fiscal.
The Income Tax Wing of the NBR has already given necessary directives to the field offices in these regards.
As a part of the internal survey, the field level officials are collecting possible taxpayers information from city corporations, Rajuk and similar organisations, and sub-registrar offices. This is popularly called ‘secondary data’. Secondary data refers to the information of the individuals that are already kept in any organisations.
READ: NBR to speed up this fiscal's VAT collection
The NBR has also started to collect information of the potential taxpayers at the upazila level through secondary data gathering, otherwise known as internal survey.
For example, a file of ‘X’ company mentions that it has 450 employees. The concerned official can ask for the names of the 450 employees and their TIN numbers.
With this little move the NBR can find out the eligible taxpayers’ names and bring them under the tax net, if they are not already.
“This is called an internal survey,” a senior NBR official explained to UNB.
In this connection, he said that at first the NBR is taking information of the trade licences that have been issued by the city corporations and municipalities.
Later, TIN will be issued in their names to bring them under tax net and collect revenue from them.
Besides, he mentioned that the NBR is taking information on foreigners from Bangladesh Investment Development Authority (BIDA), vehicle owners from the BRTA, and land buying and selling information from the sub-registry offices, power distribution offices and service oriented offices.
Information of the flat and house owners are also being taken from the National Housing Authority, the NBR official said.
All these efforts would help NBR identify the eligible taxpayers who are still staying out of the tax net.
"We hope that by this we will be able to net the affluent section of society who are evading tax," he added.
According to the NBR sources, the NBR officials generally collect information of the potential taxpayers by door-to-door survey. A senior official of the NBR said that field officials have been asked to conduct their survey maintaining health safety issues.
The total revenue target for the NBR for fiscal 2021-22 has been set at Tk 330,078 crore.
Of the total target the VAT wing will contribute the lion's share with Tk 127,745 crore.
The target for Income Tax and Tax on Profit has been set Tk 104, 952 crore. The Income Tax Wing will contribute Tk 103945.10 crore.
The revenue collection from import duty will be Tk 37, 807.18 crore, Tk 55,225.26 crore from from Supplementary Duty, Tk 55.45 crore from export duty, Tk 3685.69 crore from Excise Duty, Tk 1529.90 crore from travel tac while Tk 1050 crore from other taxes and duties.
NBR to speed up this fiscal's VAT collection
The National Board of Revenue (NBR) has asked its field offices to expedite the Value Added Tax (VAT) collection as the collection from the pocket is only 56.15 per cent in the first eight months of the current fiscal.
In this connection, the revenue collecting authority asked for attaining the target of the revenue collection keeping the present condition in mind and to put emphasis on establishing intensive communication with the big companies.
The NBR data shows that total revenue collection from VAT wing fixed in the budget for 2021-22 fiscal was Tk 127747.58 crore whereas the collection till February 2022 is Tk 71,736.88 crore, which is only 56.15 per cent.
The target for VAT collection from import level was Tk 45,554.76 crore. But till February of this year the NBR has been able to collect Tk 28,403.60 crore where in the month of February the collection was 4061.67 crore.
The collection till February 2021 was Tk 22,709.32 crore while the collection in the month of February 2021 was Tk 3050.02 crore.
It means the growth in month to month basis is 33.17 per cent while it is 25.07 per cent considering the collection of the first eight months of the two fiscals.
On the other hand, target for VAT collection from local level was Tk 82192.82 crore. But till February of this year the NBR has been able to collect Tk 43333.28 crore where in the month of February the collection was Tk 5615.67 crore.
The collection till February 2021 was Tk 38,734.97 crore while the collection in the month of February 2021 was Tk 5312.55 crore.
It shows that the growth in month to month basis is 5.71 per cent only while growth is 11.87 per cent considering the collection of the first eight months of the two fiscals.
A senior official of the NBR said that in the present situation of the world or the country during the pandemic is not very conducive for revenue collection with sizeable growth.
READ: NBR announces tax exemption for donation to third gender
“We are all aware about the present situation, this might improves as the world and the country as well are coming out from the shadow of the pandemic situation gradually. Whatever it is, we have to step forward with necessary actions to attain the target,’ he said.
He mentioned that good communications with large companies that usually give significant amount of VAT would be a better tool for enhanced revenue collections.
He said that officials would have to depend on the items like cigarettes, mobile, bank, Bkash, internet and medicine, which pay higher revenue to the national exchequer.
Besides, the NBR official said that special attention needs to be given on collecting advance VAT and outstanding revenues from various business entities.
The revenue target for the NBR for fiscal 2021-22 has been set at Tk 330,078 crore.
Of the total target the VAT wing will contribute the lion share with Tk 127,745 crore. The target for Income Tax and Tax on Profit has been set Tk 104, 952 crore.
The revenue collection from import duty will be Tk 37, 807.18 crore, Tk 55,225.26 crore from from Supplementary Duty, Tk 55.45 crore from export duty, Tk 3685.69 crore from Excise Duty, Tk 1529.90 crore from travel tac while Tk 1050 crore from other taxes and duties.
NBR announces tax exemption for donation to third gender
The National Board of Revenue (NBR) has exempted tax in donations to the Bandhu Social Welfare Society, an organization working with people of the third gender.
NBR Chairman Abu Hena Md. Rahmatul Muneem signed an order that Bandhu Social Welfare Society will get a conditional tax free facility. And this opportunity will remain valid for the next 5 years.
The NBR's public relations officer Syed A Mumen confirmed it to UNB on Wednesday.
The NBR order states that no tax will be levied on income received from all kinds of donations and grants other than the bank interest income of the Bandhu Social Welfare Society income from developmental work for the heterosexual and heterosexual population.
However, the condition is that this income should be used for welfare of the people of third gender and the organization must abide by the provisions of that ordinance.
Besides, in the last budget also special tax exemption was announced for giving jobs to people of the third gender.
READ: NBR may miss revenue target Tk 3.30 trillion this year too
It states that if an organization employs 10 per cent of its total employees or more than 100 third gender persons, then 75 per cent of the salary paid to those employees or 5 per cent of the tax payable, whichever is less, will be given to the employer as tax deduction.
Earlier, in the budget of last fiscal year, tax benefits were also given to the people of the third gender. For the first time, a tax-exempt income limit is waived for third-gender taxpayers. Their tax-free income limit has been increased from Tk 3 lakh to Tk 3.5 lakh.
Customs hotline starts test operation for ASYCUDA related service
The National Board of Revenue (NBR) has started the test operation of a hotline to provide services related to ASYCUDA World Systems for customs.
The hotline number is 16134. The traders will get this service from May 15, 2022, NBR director (public relations) Syed A Mumen confirmed to UNB on Saturday evening.
The Automated System for Customs Data (ASYCUDA) is a computerized system designed by the United Nations Conference on Trade and Development (UNCTAD) in Geneva to administer a country's customs.
Read: NBR may miss revenue target Tk 3.30 trillion this year too
The service recipients will get any service related to customs calling that hotline number. The hotline will be open every working day from 9 am to 5 pm. The regular call charges will be applicable for getting services on the hotline.
Mumen said that through the hotline, the service recipients will be able to know about the existing customs related laws and regulations in the country, including customs related services, necessary information and advice.
According to NBR, ASYCUDA World Systems is used to facilitate the import-export process and reduce the risk and generate revenue in the shortest possible time. At present, six customs houses affiliated to the NBR, 26 customs stations, 20 off-docks and EPZs are operating through the ASYCUDA World Systems.
Read: NBR works for win-win tax in upcoming budget: Finance Minister
Officials working in customs offices, port authorities, Bangladesh Bank, Sonali Bank, Bangladesh Biman, Shipping Agent, C&F Agent, Freight Forwarders, Feeder Operators and various commercial and non-governmental organizations including all commercial banks are using this system.
Govt aims at boosting revenue collection amid recovery from Covid shocks
The government has projected an increase in revenue collection in the coming days as the country’s economy has started recovering gradually from the shock of COVID-19 pandemic.According to an official document, the revenue collection for 2023-24 fiscal has been projected Tk 4999.7 billion while it will be Tk 4362,4 billion for the 2022-23 fiscal.In the running fiscal of 2021-22 the revenue collection has been fixed at Tk 3890 billion.The document said that on-going and the proposed reform plans undertaken by the government are expected to boost the domestic revenue reaching the target in the medium term.The government has set revenue target of Tk 3890 billion for running 2021-22 fiscal, which is 10.7 per cent higher than that of the revised target in fiscal 2020-21.The document mentioned that revenue collection needs to grow at a rate of 21.0 per cent (on average) from the actual collection in fiscal 2020-21 for achieving the revenue target in fiscal 2021-22.
Also read: NBR goes all-out to boost tax revenue for better economic growthRevenue mobilization is expected to be strengthened in the medium term when the economy would recover from the COVID-19 pandemic and the NBR reform programs are implemented fully.The total target of the revenue collection for the running 2021-22 fiscal is Tk 3890 billion. Of the total amount tax revenue will contribute Tk 3460 billion. The share for the National Board of Revenue (NBR) is Tk 3300 billion.The government projects to collect Tk 1049.5 billion from Income and profit taxes, Tk 379.1 billion from customs duties and Tk 1822.10 billion from VAT and supplementary duties in fiscal 2021-22.
NBR goes all-out to boost tax revenue for better economic growth
The National Board of Revenue (NBR) has intensified its tax survey, inspection, monitoring and realisation to boost the Tax GDP ratio, currently the lowest in the South Asian region.
The poor situation exists although NBR has recently witnessed a 9.51 per cent growth in individual income tax return submission.“The Board has already directed all the field offices to intensify and strengthen their respective tax survey to have a justified growth with other wings,” a senior official of the NBR told UNB wishing anonymity.He said that the Board has also directed the field offices to give extra efforts for collecting advance income tax, which is a good source of collection.
Also read: Whitening black money: Stock exchanges ask NBR to continue it in stock marketThe revenue target for the NBR for FY2021-22 has been fixed at 10.7 per cent, higher than the revised target of the FY2020-21. The revenue collection was set at Tk 330,078 crore during FY2021-22.In the last FY2020-21 the revised revenue target was Tk 301,000 crore while it was set Tk 330,000 in the main budget.Of the total target the VAT wing will contribute the lion share with Tk 127,745 crore which is 11 per cent higher than the revised target of the last fiscal. In the last fiscal the target was Tk 125, 163 crore.The target for Income Tax and Tax on Profit has been set Tk 104, 952 crore where it was Tk 103, 945 crore in the last fiscal.
Also read: Even government entities press NBR for tax exemption: NBR ChairmanThe revenue collection from import duty will be Tk 37, 907 crore, Tk 54,465 crore from from Supplementary Duty, Tk 56 crore from export duty, Tk 3825 crore from Excise Duty while Tk 1050 crore from other taxes and duties.As part of intensifying the tax survey information of the flat and house owners in posh areas like Gulshan, Banani, Uttara, Dhanmondi of the capital city will be gathered.The eligible but not enlisted persons will be given electronic tax identification number (e-TIN) instantly. “Proper directives have been given to the field level officials,” the NBR official said.Punitive measures will be taken against the e-TIN holders who fail to submit their income tax return or apply for time extension.The NBR teams will visit houses, shops and other commercial establishments in the city’s various areas to find out the potential taxpayers. The officials will take support from service agencies to scrutinise information related to income, wealth and property of the potentially eligible taxpayers.The survey teams are collecting information related to national identity card, trade licence and other business documents from people having income from house or business properties and from service or other professions.NBR has directed the tax commissioners to bring all eligible persons and organisation under the tax net and take initiative to remove the phobia regarding tax payment, sources said.It also asked to intensify the tax survey and activate the inactive TIN numbers as submitting income tax return has been made mandatory for every TIN holder from this fiscal.The Income Tax Wing of the NBR has already given necessary directives to the field offices in this regard.As a part of the internal survey, the field level officials have already collected possible taxpayers information from city corporations, Rajuk and sub-registrar offices. This is popularly called ‘secondary data’.
Secondary data refers to the information of the individuals that are already kept with an organisation.The NBR also has started to collect information of the potential taxpayers at the upazila level through secondary data gathering, otherwise known as internal survey.According to data from the April 2021 issue of the World Economic Outlook, the tax to GDP ratio of the country has been 9.9 per cent on an average since 2016-2020, while it is 19.67 per cent for India, 21.50 per cent for Nepal, 14.88 for Pakistan, 12.74 per cent for Sri Lanka.The ratio is 24.72 per cent for developing countries and 35.81 per cent for developed countries, according to the data.The tax-to-GDP ratio is a ratio of a nation's tax revenue relative to its gross domestic product, the value of goods and services produced in a country during a certain period. The ratio is also a marker of how well the government controls a country's economic resources.According to an official document, the tax to GDP ratio in the current fiscal has been estimated at 10.7 per cent.