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The National Board of Revenue (NBR) on Wednesday launched the electronic tax deduction at source (e-TDS) system countrywide to check evasion.
With this automation, some 350,000 mostly corporate taxpayers will be able to deduct tax at source in a simplified way and deposit it to the pubic exchequer.
The NBR collects 64 per cent of its direct tax as TDS.
A 21-member team of tax officials has developed the e-TDS system through interconnecting with the automated challan or AChallan system of finance ministry.
Currently, tax-deducting authorities have to submit 26 types of reports manually to the taxman in a year.
NBR officials said the reports would now be submitted through the e-TDS system without visiting tax offices.
The system was launched at a programme, the 'Official roll-out of e-TDS', presided over by NBR chairman Abu Hena Md Rahmatul Muneem at the NBR headquarters.
Comptroller and Auditor General (CAG) of Bangladesh Mohammad Muslim Chowdhury was the chief guest and finance ministry senior secretary Abdur Rouf Talukder as the special guest at the event.
Addressing the programme, Mr Muslim Chowdhury said the long-awaited (almost seven years) e-TDS system would help make the technological platform smooth.
He suggested making an efficient and seamless refund mechanism of e-TDS without delay or dilemma to ensure justice to the taxpayer.
"The automated system would bring transparency in the tax-collection process. System will collect tax instead of the taxman."
The CAG observed that litigation or delay in depositing taxes would be minimised too.
The e-TDS system should be integrated with the online tax returns and e-payment system to make it more successful.
NBR chief Mr Muneem also acknowledges that refund system is not well developed yet which needs to be addressed to gain the taxpayer's confidence.
He said the NBR earlier lagged behind its automation steps but sensitisation of officials has started paying off now. "We're going to launch another automated system by the end of this month," he added.
Mr Rouf said automated system would help check irregularities and leaks.
Many of the government's funds have gone wasted as some of the automated systems did not work properly.
"We've changed rules and regulations first before launching the automated system," Mr Rouf said.
Automated system has helped the finance ministry bring efficiency in pension and stimulus packages.
Some 82,000 pensioners have disappeared from the list of 0.9-million pensioners as the automated system verified them. It helped the government save Tk 12 billion of its funds for pensioners, the secretary added.
He says some 20-million people are supposed to pay tax, but it is currently less 10 to 15 per cent.
The e-TDS system will also help minimise differences between tax revenue collection data of the NBR and the controller general of accounts.
NBR member (income tax policy) Md Alamgir Hossain says the earlier move to launch automated system through MIST or Bitex project failed, but the NBR now utilises its own resources to make it successful.
Already 1,000 companies have got their respective user IDs and passwords to use the e-TDS system, he adds.
Niaz Morshed, NBR second secretary of income tax wing, made a detailed presentation of e-TDS.
Using the system, he says, taxpayers will be able to deposit TDS through mobile financial services, credit card or any scheduled bank.
The system will be integrated with the online return system, IVAS of VAT and all the financial institutions in future.
Deputy commissioner of taxes Ariful Huq explained the process of using the system.
Taxmen have to monitor TDS deposit of corporate taxpayers under 53 sections of the Income Tax Ordinance-1984.