Finance Minister Amir Khosru Mahmud Chowdhury on Sunday said the government has launched a series of reforms to broaden the country's tax base without raising tax rates.
The minister made the remarks in Parliament while replying to a supplementary question from reserved seat BNP MP Shacot Ara Akter, UNB reports.
Responding to the question on the government's initiatives to increase revenue by expanding the tax net rather than raising tax rates, Amir Khosru said several steps have already been initiated to bring more people and businesses under taxation.
He said the government is identifying the market share of every tax-paying company across different sectors to ensure a fairer taxation system.
"We are determining the market share of every company in each sector. Tax liability will have a relationship with market share because those with larger market shares should bear a proportionate tax burden," he told the House.
The Finance Minister said such an assessment had not been carried out in the past, but the government is now systematically determining the market position of companies to strengthen tax administration.
He also announced the introduction of an area-based flat-rate tax system for individuals and businesses that are currently outside the tax net.
Under the scheme, new taxpayers will be able to pay a fixed amount of tax according to their financial capacity without having to complete tax return forms, he said.
The minister said the flat-rate system is designed to minimise harassment by tax officials, as taxpayers will only need to retain the payment receipt after paying the prescribed amount.
"Our objective is to create a large tax network through this flat-rate system. Once people are brought into the tax net, the regular taxation policy will be implemented gradually," Amir Khosru said.
He expressed hope that the simplified tax regime would encourage voluntary compliance and significantly expand the country's revenue base without imposing additional tax burdens on existing taxpayers.
