Tax collection faces bump on tumult
Published: February 26, 2015 6:45 pm
26 February 2015, Nirapad News: The tax revenue collection faced a shortfall of Tk 23 billion in seven months to January, triggered by a crippling political turmoil, officials said.
The National Board of Revenue could collect Tk 694 billion in tax revenue in July-January period of the current financial year, down from its targetted Tk 718 billion. Tax officials said collection of value added tax, also known as consumption tax, experienced a blow as businesses were hit hard by months of political unrest and transport blockade.
The NBR chairman Md Nojibur Rahman ruled out the possibility of missing the target of Tk 1.49 trillion for FY 2014-15. “I’ve instructed all field level officials to work together for achieving the target,” Mr. Rahman said, adding that the revenue board would devise an exemption policy to make sure that taxpayers get tax-benefit.
“It will be a coordinated policy with the participation of relevant ministries and departments,” he added.
The NBR chief said the tax authority has decided to award top 10 taxpayers, individuals and corp orates from its all tax zones for their contributions to the public exchequer.
In the first phase, the revenue board has selected 30 taxpayers from its three tax zones large taxpayers unit, tax zone-1 and tax zone-2 in Dhaka.
Led by Grameenphone, the taxpayers include some eight commercial banks.
The NBR head, also secretary of Internal Resources Division (IRD), announced the names of 30 taxpayers at the press briefing.
Standard Chartered Bank, Islami Bank Bangladesh Ltd, HSBC, Pubali Bank, Southeast Bank, Eastern Bank, United Commercial Bank and Dutch-Bangla Bank are among the top ten taxpayers.
British-American Tobacco Company, Akij Food and Beverage, ACI Formulations Ltd, Akij Jute Mills Ltd, ACI Motors Ltd, Akij Textiles Mills, Ashuganj Power Station Co Ltd, Akij Bidi Factory, SGS Bangladesh, Square Food Beverage and Yarn, Singer Bangladesh Ltd, Kuhne Nagel Ltd, Sako International, Youngone High-tech Sportswear Industries Ltd and Saiham Cotton Mills Ltd are among the top corporate taxpayers.
The NBR chairman said top ten taxpayers of each of the 33 tax zones across the country would be rewarded in phases. Ajmat Rahman, Md Moshiur Rahman Humayun, Md Nurul Huda and Md Kaus Mia are among the individual taxpayers selected for award in the first phase.
The NBR chairman disclosed some vital decisions taken by the revenue board at a board meeting on Tuesday.
Injured freedom fighters would get relief from payment of Advance Income Tax (AIT) on registration and renewal of private cars, he said.
“We have approved a tax exemption plea of Begum Rokeya women and children health development organisation on its bank interest,” the revenue board chairman said.
Also, a tax-exemption request on donation of Hope Worldwide Bangladesh was also approved in the meeting, he added.
The NBR chairman unveiled his several action plans to strengthen revenue base that include expediting settlement of analogue pending revenue cases that stuck up some Tk 260 billion taxes.
“The NBR has formed a legal solution group. It has asked tax offices to send a list of the disputes involving taxes above Tk 10 million.”
“We have taken a move to strengthen the research and publication wing. Policy Research Institute (PRI) has placed survey findings in this regard,” Mr. Rahman said.