Business Report:
The National Board of Revenue (NBR) will be divided into two divisions- one will be Revenue Policy and the rest will be Revenue Administration.
The new set up will be completed by this month before Eid-ul-Fitr ant their operations set to begin from the start of the new fiscal year NBR Chairman Abdur Rahman Khan said it to media.
Speaking at a discussion, titled ‘Income Tax Act 2023: Reform Perspective’, at the NBR headquarters in the capital’s Agargaon on Wednesday, the NBR Chairman said, “Revenue-related expert officials will work as head of the two departments, while other experts will serve as part of an auxiliary team.”
The BCS Taxation Association organized the program, presided over by its President, Barrister Mutasim Billah Faruqui, and Secretary General Syed Mohidul Hasan also participated in the discussions. Income Tax Commissioner Iqtiaruddin Mamun presented the keynote paper.
In his speech, the NBR chairman also addressed Bangladesh’s low investment levels, attributing them not to high tax rates but rather to a lack of good governance.
“There was an assumption that offering tax incentives would attract investment, but that didn’t happen. Businesses are not afraid of taxes. The main reason behind the lack of investment growth is the lack of good governance,” he said.
He further emphasized, “Even if we offer zero taxes and provide incentives, foreign direct investment [FDI] will not come unless good governance is ensured. The rule of law is absent here.”
He also held an inconsistent tax policy responsible for a lack of confidence on the part of investors.
Abdur Rahman Khan also pointed to the disproportionate burden of indirect taxes, saying, “Still, the poor contribute two-thirds of the total revenue through indirect taxation.”
Why separation of policy and enforcement?
Currently, the revenue authority is responsible for both formulating revenue-related policies and enforcing them at the field level.
