Finance Division to automate tax returns system

Finance Division will develop an Automated Online Income Tax Return system to increase the tax collection of National Board of Revenue, an official said.

A 10-member team of the Finance Division will present the draft presentation of the IT-based Automation Online Income Tax Return system within a month, an official Internal Relation Division said.

The official also said the National Board of Revenue has failed to implement the Automatic Online Income Tax under Vat Online Project that started from 2014.

Finance Ministry has successfully introduced IT-based National Saving Certificate data and automated treasury system. As a result, Internal Resources Division wants to give the responsibility of Automation Online Income Tax Returns project to Finance Division, the official said.

Senior Secretary Internal Resources Division (IRD) & Chairman National Board of Revenue (NBR) Abu Hena Md. Rahmatul Muneem already signed the summary of the Finance Division proposal to develop an Automation Online Income Tax Returns system.

According to the summary, the finance division will form a 10-member committee for developing system with five members each from Finance and Internal Resources Division.

According to the NBR in the first quarter of the ongoing fiscal until September 25, 2020, NBR collected Tk 41,0187 crore against Tk 58,728 crore estimated for the first quarter (July-September) of 2020-21 fiscal year, resulting in the deficit of Tk 13,540 crore.

Senior Secretary of Finance Abdur Rouf Talukder said the compliant about country's income tax-GDP ratio low compared to any other country. After introducing the automation of online income tax returns system in the county can increase its income tax- GDP ratio along with spike in the revenue collection, secretary said.

At present, total number of the Tax Identity Number (TIN) holders is 50 lakh but only 20 lakh submitted the tax returns due to the complexity of submission of the tax returns. Following the automation of online income tax returns system, the TIN holders will be encouraged to submit their tax returns with ease, according to the summary of the finance division proposal.

The finance ministry’s Integrated Budget and Accounting System Management System(IBAS) has already implemented data base of official and staffs of the government, Electronic Money Transfer of civil servants, automation pension system, automation of saving certificate system, pension data base, senior secretary said in summary

Official of Finance Division said although the government has taken an ambitious target to raise the revenue-GDP (Gross Domestic Product) ratio to 24.1 percent as it aims to achieve the developed nation status by 2041.

A General Economics Division (GED) study revealed the rapid pickup will be needed to keep the revenue-GDP ratio at an average 18.50 per cent rate annually over the 20 years through fiscal year 2041.

Bangladesh is one of the least-taxed economies in the developing world as its tax-GDP ratio hovered between 9.0 and 10 per cent of GDP during the last five years.

Economist and former IMF adviser Dr Reza Kibria has criticized the section of businessmen who pressurised online VAT project to abort and the government thus failed to achieve the target.

It is not possible for NBR to be ambitious in achieving the revenue target saying it will be difficult to expand the country's internal resources during the Covid-19 period, he said,

He said, “Tax should not increase without reducing income inequality of people in the country even automation of system.”

“More tax should be levied on rich people rather than the poor and; lawmakers show little wealth in their wealth statement submitted to the Election Commission,” he said.

ask/wi