NBR undertakes project to boost indirect tax collection

Al Amin :
The National Board of Revenue (NBR) has undertaken a big project named ‘Strengthening Infrastructure and Capacity of Customs and VAT Administration’ to accelerate internal resource mobilization.
The estimated cost of the project financed by the World Bank and the government is around Tk 2,000 crore and is expected to be completed by 2030.
Of the amount, the WB is expected to provide Tk 1,600 crore and the rest will be financed by the government, according to the Preliminary Development Project Proposal (PDPP).
The project comprised with infrastructural development of customs house and VAT commissionarates, residential buildings for the officials, modern equipments, arrangement of local and international training and scholarship, setting up with testing lab, and purchasing microbus and pickup for easing transportation.
NBR officials said the project will help to increase revenue collection, to create better job environment and more motivated workforce, and to enhance the capability of the revenue board.
Improving infrastructure of existing Customs, Excise and VAT Offices, developing residential facilities of Customs and VAT officials and staffs, conducting a study on the potential challenges and capacity building needs of officials after the LDC graduation, and conducting feasibility study on establishing new infrastructure for new customs houses at different places are the aims of the project. Besides, strengthening the capacity the officials by local and foreign training and study in abroad opportunity NBR undertakes project
and the Customs and VAT offices will be equipped with non-intrusive inspection (NII) devices are also goals of it, the officials said.
NBR has taken the project seriously as it will impact on revenue collection directly, if the project is implemented, they added. Abdul Mannan Sikder, Member of the NBR, told The New Nation, “Being soft loan, Bangladesh will not be able to take such loan from the World Bank after graduating from LDC in 2026. Following this, NBR has given priority on it”.
A team of the World Bank is scheduled to visit Bangladesh to conduct feasibility study in next June and to negotiate the loan. Then, the NBR will prepare development project proposal for final approval of the government, he added.
If the ECNEC approved the proposal, NBR will take steps to implement it, he said.
NBR officials also said that the proposed project will help to increase tax-GDP ratio to 12.3 per cent by 2025.
Indirect taxes (earnings from VAT and Customs wings) contributed the 65 to 67 per cent to the total revenue collection in the country as Bangladesh still relies primarily on it. Besides, an updated customs and VAT administrations are crucial to cope with the modern international trade rules. Keeping the situation in mind, NBR has taken the initiative, the officials said.