Income tax income increases by 25.78% since independence

Direct tax or income tax has increased by more than 25 per cent, from 9.72 per cent in FY 1972-73 to 35.50 per cent in FY 2019-20, and it is four times high after the independence of Bangladesh.

The information was revealed at a seminar on the occasion of National Income Tax Day on Tuesday. The National Board of Revenue organised the seminar on “Role of Income Tax in Implementation of Vision and Building of Future Bangladesh” at the Revenue House at Segunbagicha of the capital.

According to the NBR data, the number of registered taxpayers has increased by more than six times in the past decade. The data says, In FY 2012-13, there were 11.10 lakh taxpayers registered with the board, whereas the number is now 68.40 lakh till October this year.

At the seminar NBR Chairman Abu Hena Md Rahmatul Muneem said the board has been working to increase the tax net and the tax rate can be reduced as much if the tax net grows in the country.

He added that the NBR has taken up several steps for automation as a part of expanding the tax net plan. “More than 90 per cent of the development projects in the country at present are being financed from our national revenue collection,” the NBR chairman said.

Abu Hena said, “We have reduced the tax rate by a decent number to encourage more people to pay tax.”

Attending the seminar as the chief guest, Law Minister Anisul Huq advised officials to be vigilant so that people’s tax money is not misused. He also urged taxpayers to pay taxes.

Emphasising ensuring the best use of tax money, the minister said, “The tax money paid by the people is spent on the welfare of the people including education and health. Taxes need to be paid to all eligible people to meet the development needs. When people will pay more income tax, more development will take place.”

Speaking as the special guest, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) president Md Jashim Uddin said that new sectors need to be identified to increase tax collection. “Harassment in the name of audit must stop. We need to ensure transparency here,” he said.

Khusru Mahmudul Hasan, President of the Institute of Chartered Accountants of Bangladesh (ICAB) said, “We do not want to be an import-dependent country. The activities of ‘Made in Bangladesh’ need to be further
strengthened.

He also proposed raising the minimum tax rate.

Jamaluddin Ahmed, General Secretary of Bangladesh Economic Association, laid stress on reforming the NBR for building a digital Bangladesh.

“NBR is still unable to install its offices in upazila level. In every upazila there are nine offices that spend money for people, but there is no office which will collect money for them,” he said.

NBR Member (tax policy) Md Alamgir Hossain suggested more investment in the extraction of internal resources. “The more you invest here, the better your return will be in the long run,” he added.

Another NBR member (VAT Policy) Masud Sadiq said 50,000 taxpayers have filed e-returns till now. “The goal in the future will be to increase it to 80 per cent.”