NBR to form two new tax units to boost revenue

DHAKA : The National Board of Revenue (NBR) is going to form two new tax units, aiming to enhance revenue collection through making the management of tax at source more efficient and helping it to automatically receive information online, reports UNB.
An NBR senior official told UNB that the government has already given the green signal to form the two units-‘tax at source unit’ and ‘tax information unit’.
The NBR has been working to expand the net of tax at source gradually. New areas of tax at source have been identified. And the revenue collection is increasing gradually, according to an official document.
The document says a decision has been taken to set up another unit for tax at source to make its management more effective, and a system has been introduced to audit the tax-at-source returns to stop tax evasion.
Another decision has been taken for setting up modern and pro-technology ‘tax information unit, aiming to introduce online-based automatic information collection system.
“Besides, the government has decided to set up 103 income tax offices at upazila level to improve revenue collection from growth centers. “A process is underway to introduce these new offices,” the official document says.
It further says the number of income tax return of the current fiscal year has increased by four lakh. “Some nine lakh new taxpayers have got registered (took taxpayers identification numbers) during the first nine months of the outgoing fiscal. It’ll exceed 30 lakh after the current fiscal year,” the document mentions.
According to the NBR official, “The government is taking these steps to improve revenue collection from the income tax wing.”
Currently, he said, the income tax wing is contributing 37 percent of the total revenue collection. “The target has been fixed to enhance the percentage of the collection up to 50 percent of the total collection by the fiscal 2020-21,” he said.
The NBR official said the new units are the part of the government’s initiative to introduce new pocket for gathering taxes.
“As a result, the focus will be on the collection of more money from the existing pockets as well as finding out new avenues to improve the revenue collection,” he said.
The NBR has got a target of Tk 2,03,212 crore for the outgoing fiscal (2016-17). Vat will be the biggest contributor with Tk 72,764 crore, while Tk 71,940 crore will come from income tax and tax on profit. Supplementary duty will contribute Tk 30,075 crore, while excise duty Tk 4,449 crore, export duty Tk 44 crore and other taxes and duties Tk 1,428 crore.