Income tax

Income tax wing has four months to reach remaining 50% target

The National Board of Revenue (NBR) has taken tougher steps to increase its collection from the income tax wing by widening its net and carrying out unpaid taxes, because in the first eight months of the current financial year, it has collected just over 50% of its income. target for exercise.

The income tax wing’s revenue collection target for the financial year 2021-22 is Tk 1.04 trillion. But, according to available data from the NBR, until February this year, the wing was able to collect only 528.54 billion Tk. This means that the rest, an almost equal amount of 510.90 billion taka, must be collected in just four months.

In February, the eighth month of the fiscal year, the BNR collected 64.47 billion taka, almost 10% more than the corresponding month in 2021, when it collected 58.82 billion taka.

Collection during the first eight months of the current financial year is 13.3% higher than that of the corresponding period of the previous financial year.

According to the NBR sources, the council has directed tax commissioners to put all eligible individuals and organizations under the tax net and take initiatives to eliminate the phobia of tax payment hassles.

According to a UNB report, the council has also called for the tax investigation to be intensified and inactive TIN numbers to be activated, as the submission of tax returns has been made mandatory for all TIN holders from the UK. exercise in progress.

The income tax wing of the NBR has already given the necessary guidelines to field offices in this regard.

As part of the internal investigation, field officials collect information on potential taxpayers from municipal corporations, Rajuk and similar organizations, and sub-registry offices. This is commonly referred to as “secondary data”. Secondary data refers to information of individuals that is already kept in all organizations.

The NBR has also started collecting information on potential taxpayers at the upazila level through secondary data collection, also known as internal survey.

For example, a file for company ‘X’ mentions that it has 450 employees. The official concerned can request the names of the 450 employees and their TIN numbers.

With this small gesture, the BNR can discover the names of eligible taxpayers and place them under the tax net, if they are not already.

“It’s called an internal investigation,” said a senior NBR official.

In this regard, he said that, as a first step, the NBR is taking information on business licenses that have been issued by municipal corporations and municipalities.

Later, the TIN will be issued in their name to put them under the tax net and collect the revenue.

In addition, he mentioned that the NBR collects information on foreigners from the Bangladesh Investment Development Authority (BIDA), vehicle owners from BRTA, and information on buying and selling vehicles. land from sub-registry offices, electricity distribution offices and service-oriented offices.

Information on flat and house owners also comes from the National Housing Authority, the NBR official said.

All of these efforts would help the NBR identify eligible taxpayers who remain outside the tax net.

“We hope that in this way we will be able to protect the wealthy part of society that escapes taxation,” he added.

According to NBR sources, NBR officials usually collect information on potential taxpayers through door-to-door surveys.

A senior NBR official said field officials have been told to conduct their investigation with health safety issues in mind.

The NBR’s total revenue target for fiscal year 22 has been set at Tk 3.3 trillion.

Of the total target, the TVA wing will contribute the lion’s share with Tk 1.28 billion.

The income tax and profit tax target has been set at Tk 1.05 trillion. The income tax wing will contribute Tk 1.04 trillion.

Revenue from import duty will be Tk 378.07 billion, Tk 552.25 billion from supplementary duty, Tk 554.5 million from export duty, Tk 36.86 billion from excise duty , Tk 15.30 billion from travel tac and Tk 10.50 billion from other taxes and duties.