Staff Reporter :
Only around one-third of Taxpayer Identification Number (TIN) holders have submitted their tax returns, despite the National Board of Revenue (NBR) making it mandatory this fiscal year, NBR Chairman Md Abdur Rahman Khan revealed at a discussion yesterday.
The NBR Chairman stated, “Out of 11.3 million TIN holders, only 4 million file tax returns, while approximately 8 million do not.
If people can live peacefully without filing returns, then perhaps those who do file should be asked why they bother!”
He also disclosed that a taxpayer had brought Tk 7.30 billion into Bangladesh, taking advantage of the legal tax-free remittance facility for expatriates.
When asked about the individual’s identity, he responded, “Better not to mention the name. Actions must be taken first, and then you will automatically know who it is.”
He made these remarks on Monday during a discussion between BCS tax cadre officials and the Economic Reporters’ Forum at the Revenue Building in Dhaka’s Agargaon.
The event was organised by the Bangladesh Civil Service (Taxation) Association.
Explaining why direct tax collection has increased while economic inequality has not decreased, the NBR Chairman said, “We enacted a law to ensure that our expatriate brothers, who work hard abroad and send money to Bangladesh through banking channels, would have their income tax-free here.
“This initiative aims to encourage expatriate workers to transfer their earnings to Bangladesh through formal channels, thereby contributing to our foreign exchange reserves.”
However, he pointed out instances of tax evasion despite existing laws, stating, “You will be surprised to learn that a taxpayer has brought in Tk 7.30 billion, claiming it as wage earners’ remittance, which is tax-free.
“This explains why the Gini coefficient is moving in the wrong direction.
Either we overlooked these issues, failed to understand them, or turned a blind eye. We have allowed this to happen, and that is our biggest problem.”
When asked again about the taxpayer’s identity, he reiterated, “Better not to mention the name.
Once actions are taken, you will know automatically. When the person comes into the limelight, you will recognise them.”
Commenting on tax enforcement, he said, “Laws were enacted, but implementation has been lacking.
We currently have 11.3 million taxpayers. If you analyse the situation, you will see the reality.
“Why would someone file a tax return if they can live peacefully without it? Those who do not file returns face no hassle, while those who do often encounter complications. Think about it,” he remarked.
“This indicates that enforcement at the field level is not being carried out effectively, leading to these problems and unintended consequences.”
The NBR Chairman also expressed optimism that, in the future, tax information would be collected automatically by integrating an Application Programming Interface (API) with banks.
Through this system, details regarding taxpayers’ deposits, the amount deducted at source, and other key tax information would be automatically available when filing returns.
Economic Reporters’ Forum (ERF) President Doulot Akter Mala urged the NBR to eliminate taxpayers’ fears, improve coordination among government agencies, and regularly publish updated tax-related information online, including import and export data.
