National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan has strongly criticised the practice of whitening black money, calling it an “indecent deed” and “totally unacceptable,” during a views exchange meeting on Sunday.
“I believe that the practice of whitening black money is an indecent act and completely unacceptable,” he said. “By offering such amnesty, we are essentially admitting to the presence of corruption and demoralizing honest taxpayers.”
The NBR Chairman made these remarks in response to questions from reporters following a meeting with high-ranking NBR officials. He expressed his disapproval of the policy, emphasising the unfairness it creates between honest taxpayers and those who evade taxes.
An honest taxpayer pays taxes at the regular rate throughout their life, while another person evades taxes and then legalises their money at a lower rate through this amnesty, he pointed out.
Reflecting on his opposition to the scheme during the 2024-25 budget discussions, he revealed that he had voiced his concerns to the previous NBR chairman and even to a friend in the Prime Minister’s Office. “At one point, it seemed like the amnesty would be scrapped, but it ultimately remained. It should be scrapped,” he asserted.
When asked about the possibility of removing the amnesty from the current 2024-25 budget, the NBR Chairman said he could not predict what decision the Advisory Council would make on the issue.
“As a citizen, I must say that this is not a good practice and should never be done again. We have implemented it many times before, but the results have never been satisfactory,” he said.
The Finance Bill 2024 includes a provision allowing undisclosed money, commonly referred to as black money, to be legalised by paying a 15 per cent tax.
NBR chairman stresses need to boost tax-to-GDP ratio
National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan on Sunday underscored the importance of increasing Bangladesh’s tax-to-GDP ratio, which he described as critically low compared to neighbouring countries.
“Our tax-to-GDP ratio is currently just 7.3 per cent, whereas it stands at 12 per cent in India, 17.5 per cent in Nepal, 12.3 per cent in Bhutan, and 7.5 per cent in Pakistan,” he highlighted during his first meeting with senior NBR officials at his office in Sher-e-Bangla Nagar. “We must prioritise enhancing our tax collection efforts.”
He pointed out that the government’s budget is largely based on revenue collection targets, which he suggested are often set unrealistically high. “The NBR is given very high targets in the budget, which are not always set with professional considerations,” he noted.
This approach, according to the NBR Chairman, has led to the government consistently formulating deficit budgets, which in turn increases national borrowing. “We need to generate sufficient revenue to avoid further increases in national debt,” he emphasised.
He also pointed out that 67 per cent of the government’s revenue currently comes from indirect taxes. “We need to shift our focus toward enhancing direct tax collection, which requires competence and intense hard work,” he said.
He acknowledged that the expansion of the tax net has been limited, with only 5.2 per cent of the population registered as taxpayers, compared to 23.08 per cent in India.
In a bid to improve the tax administration and support foreign direct investment (FDI), he announced the formation of three task forces to amend the Customs Law, Tax Law, and VAT Law. “A business-friendly tax administration is crucial for attracting FDI,” he said. “Policy consistency is also vital—frequent changes in tax policies can undermine investor confidence.”
Khan stressed the importance of enhancing taxpayer services through comprehensive automation, which he believes should be both effective and sustainable. He also warned NBR officials to strictly adhere to rules and regulations. “Follow the rules with zero deviation, or face consequences,” he cautioned.
Reflecting on recent national events, he made a poignant remark about his philosophy, “I want to make it clear that I have no interest in living like a cockroach, I want to live like a dinosaur.”
The Chairman urged the NBR to meet its revenue targets through diligent work and careful planning. “We must strive to achieve our goals with due diligence and proper planning, backed by intense hard work,” he said.
