TIB slams move to launch fresh revenue automation projects

Transparency International Bangladesh (TIB) has opposed the government's move to launch any fresh project on automation of revenue management blindly following donor prescriptions and without considering their desired outcomes.

The TIB also called for giving highest priority on domestic technological knowhow and artificial intelligence while adopting any such projects.

Citing media reports, the TIB in a statement on Wednesday said the National Board of Revenue (NBR), with the help of the World Bank, is planning a project valued at approximately Tk 10 billion to enhance income tax collection and prevent tax evasion.

Although several digitisation and automation projects have been undertaken to increase revenue collection and improve transparency in public expenditure management and audit activities, such projects have yielded little result.

Without investigating previous failures and finding solutions, the government is preparing to launch yet another costly project, TIB Executive Director Dr. Iftekharuzzaman said in the statement.

"The TIB believes that initiating a new project without careful consideration and blindly following donor prescriptions without learning from past mistakes is shortsighted and amounts to wasteful spending of public funds," he said.

At the same time, the anti-corruption organisation has called for ensuring the use of modern technology, particularly artificial intelligence (AI), to simplify income tax collection and curb tax evasion, while also prioritising domestic technological capacity and potential, said the statement.

"Usually, technology or software providers are accountable for training and developing the necessary workforce," Dr. Zaman said, expressing surprise at the inclusion of a provision to establish a skill development centre for Systems, Applications, and Products in Data Processing (SAP) technology under the project.

"Why is such a specialised centre being established with borrowed money, and for whom?" he questioned, calling for initiating investigation into the matter.

According to the statement, processes such as filing income tax returns or VAT collection have not yet been made online; the paperwork-based system remains the primary method for revenue collection, it mentioned, adding that harassment and corruption still persist. According to the TIB, the tax-to-GDP ratio has not increased-in fact, it has declined over the past 12 years.

In FY '24, it fell to 8.5 per cent whereas it was 9.1 per cent 12 years ago, it said, adding the average ratio during that time was even lower at 7.4 per cent, which placed Bangladesh among the countries with the lowest tax-to-GDP ratios globally.