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Businesses Wednesday were highly critical of the field-level revenue officials for alleged harassments, irregularities and inefficiencies that ultimately do disservice to the economy of Bangladesh, prompting instant response on remedies.
At a meeting with the National Board of Revenue (NBR) at its headquarters, business leaders and trade-body representatives also voiced concerns about the non-adjustment of advance tax (AT) and the existing high rate of turnover tax for small businesses.
They, however, had a word of praise for the NBR for its recent reform initiatives aimed at improving the ease-of-doing-business ambiance.
Chairman of the NBR Abdur Rahman Khan acknowledged the resentments of the businesses and laid importance on brining about regulatory reforms.
"We must amend certain rules to make day-to-day business operations easier," he told his business audience, with reference to the aspirations behind the regime change in the country.
"The new generation hopes that no one will face discrimination. Businesses pay a portion of their hard-earned income (as tax), but they often feel they are not receiving proper services or benefits in return," said the new revenue chief, who came to the helm after the changeover.
The NBR chairman sought the board authorities' greater collaboration with commercial banks to facilitate taxpayers.
He clarifies that such collaboration does not mean the NBR will monitor individual bank-account details but will instead streamline processes for tax compliance.
The NBR will allow non-bonded exporters to release raw materials under bank guarantees. Frozen-fish exporters are also likely to be brought under bond facilities. Bond automation will be introduced to reduce the frequency of annual audits.
Corporate tax-return submission will move online later this year, while income-tax practitioners will gain access to submit clients' tax returns online from next week.
The NBR also introduced the Grievance Redress System (GRS) to address taxpayer complaints and urged businesses to use the platform.
Referring to a recent case highlighted by the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), the NBR chairman said a mismatch in HS codes had caused difficulty to an exporter in releasing bonded goods.
"We have issued a directive to release goods despite such errors. These issues will be resolved later through investigation," he explains. The latest measures meant for accelerating trade, he said.
The board chairman also urges businesses to cast off the mindset of operating solely to obtain tax exemptions. "For any tax exemption, we must evaluate the benefits for the country and its people, not just for individuals," he asserted, emphasizing that VAT was initially designed as a reasonable and non-discriminatory tax measure.
Nasir Khan, Managing Director of Jane's Footwear Ltd, criticized the treatment the leather sector receives from authorities, saying that it had been "kept as a bonsai tree," without opportunities for growth.
"We face fake cases, and after years in court, we are eventually cleared - but the responsible officers are never held accountable," he said.
"The hike in turnover tax is putting pressure on us even when we are not making profit."
The NBR chairman responded: plans are underway to track and evaluate field officers' performance, ensuring accountability. Priti Chakraborty, Director of Bangladesh Women Chamber of Commerce and Industry (BWCCI), focuses another concern, saying that the previous provision allowing interest payment to be made within three years had been suspended in FY2023.
A representative from a leading steel mill accused port authorities of deliberately transferring goods to inland container depots, thus creating additional costs and delays.
"We aim to clear goods within three days of free time, but ports send goods to inland depots to benefit certain businesses," he alleged.
The revenue-board chief urged businesses to actively engage with the newly introduced GRS platform.
"Our main problem is that the custodians are eating away at the plants," he said metaphorically, stressing the need for systemic reforms to protect businesses and enhance revenue collection.
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