Pressure on taxpayers to increase slightly owing to higher collections goal

Says NBR official
STAR BUSINESS REPORT
The pressure on all categories of taxpayers, including VAT-paying companies will slightly increase as the government looks to accelerate revenue collections, said a top official of the National Board of Revenue (NBR).
In order to avail various rebate facilities under the existing VAT Act, Md Zakir Hossain, commissioner for customs, excise and VAT commissionerate of Dhaka East at the NBR, requested businesses to enhance their understanding about the Act, according to a press release.
He spoke at a workshop on customs, VAT and income tax management at the auditorium of the Dhaka Chamber of Commerce and Industry (DCCI) to inform the business community about the changes brought into the relevant acts in the budget 2024-25. The chamber organised it.
The NBR has been given a target to collect Tk 480,000 crore in the current fiscal year of 2024-25, an increase of 17 percent from a year ago.
Of them, the tax administration looks to achieve an equal share of income tax and VAT collection in FY25 of Tk 1.77 lakh crore while the customs wing will have to chase a target of Tk 1.24 lakh crore.
Hossain said no fundamental changes have been brought in in the new VAT Act, but two changes have been made in regard to the working procedure of the NBR.
In its press release, the DCCI urged the government to streamline the tax mechanism to improve the understanding of taxpayers, make compliance easier, and reduce time and costs.
“Tax calculation for corporates should be in line with accounting standards. In order to encourage compliant businesses, they can be rewarded in some cases,” said DCCI President Ashraf Ahmed.
The DCCI chief said automation would cut discretionary measures and reduce leakages.
Regarding compliance, Ahmed said that a compliant business entity never faces any hassle. “A transparent and accountable revenue system will expand the tax net as well as eliminate hassle.”
He also said that there are a good number of positive things in the VAT Act, the Income Tax Act, and the Customs Act. He, therefore, suggested businesses practise them.
Snehasish Barua, adviser of the DCCI standing committee on customs, VAT and NBR-related issues, and a partner of Snehasish Mahmud & Co, said in order to expedite industrialisation across the country, the import duty should be reduced to boost the economy.
He emphasised ensuring a sustainable revenue system considering the overall condition of the economy.
MBM Lutful Hadi, vice-president of the Institute of Chartered Accountants of Bangladesh, said the new Customs Act has been introduced to bring down the cost of doing business.
He urged the government to implement the Act properly.
About 90 representatives of the DCCI’s member firms participated in the workshop, the press release said. DCCI Vice-president Md Junaed Ibna Ali, and directors Kamrul Hasan Tuhin and M Mosharraf Hossain were also present.