NBR to access DPDC database to hunt tax evaders

Business Desk :
The National Board of Revenue (NBR) yesterday signed a memorandum of understanding (MoU) with the state-owned Dhaka Power Distribution Company (DPDC) at the former’s headquarters to gather information on electric meter holders in the capital as a part of its efforts to hunt down tax-dodgers and expand the tax net.
Under the MoU, the tax administration will get access to the DPDC database and examine tax compliance records of nearly 16 lakh electric meters under the company.
By accessing the system, taxmen will be able to see the flat or house ownership status of a taxpayer and match its actual electricity consumption with the expenditure shown in the tax return.
The move comes as a part of the tax-collector’s wider move to gather information on people with taxable income from various government agencies to net more taxpayers in the country, which suffers from one of the lowest tax-GDP ratios in the world.
Bangladesh has roughly 80 lakh registered taxpayers that account for 5 per cent of the country’s total population of 16.5 crore. In case of submission of tax returns, the ratio of submission is around 2 per cent of the total population, although tax officials believe the number of people with the capacity to pay tax is higher.
In his budget speech for the current fiscal year, Finance Minister AHM Mustafa Kamal said the number of middle-class and above population is about 4 crore in the country, but most of them are not paying income tax.
To hunt tax-dodgers and increase income tax collection, the NBR initially started signing agreements with regulatory agencies a couple of years ago. As such, it has inked deals with regulatory agencies such as the Bangladesh Election Commission and Bangladesh Telecommunication Regulatory Authority.