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5 years ago

NBR faces Tk 110b revenue shortfall in first quarter

Lower allocation for dev projects blamed

Picture used for illustrative purpose only — Collected
Picture used for illustrative purpose only — Collected

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The revenue board has faced a Tk 110 billion shortfall against its target in the first quarter of the current fiscal year as the government allocated less for the development projects, its head said on Sunday.

Tax collection has not increased as expected in the July-September period of the fiscal as the release of funds against public sector projects remained poor in the first two months, said chairman of the National Board of Revenue (NBR) Md Mosharraf Hossain Bhuiyan.

"We hope to offset the deficit in the next quarter (October-December)," he said.

His optimistic views came at a showcasing programme of NBR's innovation, held in Dhaka.

Principal Coordinator (SDG affairs) of the Prime Minister's Office Abul Kalam Azad attended the programme as the chief guest.

The NBR has showcased 11 innovative ideas to simplify tax collection and monitoring system.

The innovative systems are: Benapass for customs, audit management, demand and collection tool, bank search tool, advance tax reminder tool, excel sheet income tax return processing, VAT-east, customs e-payment, e-EGM, LTU-VAT mobile app, and e-savings.

These software and mobile apps have already been implemented in a few tax, VAT and customs offices.

Speaking at the programme, Mr Azad said the integrated software can bring about better results in simplifying tax collection process.

"The country will lose its investment potential unless the tax payment process is simplified. Investors will choose other destinations," he said.

He suggested that the NBR explore the possibility of launching paperless office and show path to other government entities.

He appreciated the innovations of the tax -collecting authority and recommended honouring relevant officials with proper incentives for their creativity.

NBR chairman said the innovations should be implemented in field-level tax offices too.

"We want to increase revenue by ensuring transparency and making the tax payment system hassle-free," he said.

The NBR is now compiling the actual data of revenue collection reconciling with those of the Controller General of Accounts Office's, he said, adding there is no tempered data at NBR now.

He said the target for revenue collection has been increased in line with the increase in budget size.

The NBR chairman said the board with its 34,000 manpower can create an example of paperless office.

Kanon Kumar Roy, income tax policy member and convener of innovation team, said the innovations will be scaled up to other tax offices soon.

He gave a presentation with the details on the operations of the innovations at the NBR.

Mr Roy said the expansion of the NBR is imperative to increasing revenue collection.

Dr Jamaluddin Ahmed, former president of the Institute of Chartered Accountants of Bangladesh (ICAB), said there are some 90,000 villages in the country where business activity is going on.

Those businesses should be brought under tax net through expansion, he said.

"Budget size can be increased by three-fold by brining those economic activities under the tax net," he said.

Of the innovations, beanpole land customs station is using the Benapass software to expedite import and export activities, data entry of the car pass through one-stop service.

Currently, it is taking only two minutes in the data entry process through the software instead of earlier 10 to 15 minutes.

VAT East software has been installed at the Customs, Excise and VAT commissionarates, Dhaka (east) for checking Business Identification Number (BIN), lodge complains, find VAT offices, compliance alert, acknowledgement receipt, taxpayers' survey, spot assessment, etc.

E-savings software, an innovation of the National Savings Directorate, would help the entity to determine the maximum ceiling of investment in the saving certificates.

With the software, the encashment of savings tools can be made through automated payment slip.

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