Revenue boss berates field staff for ignoring instructions

National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan Wednesday berated field-level officials for disregarding directives on matters of tax collection and urged businesspeople to act as whistleblowers against wrongdoings.

"We often receive complaints that even after we issue instructions, field officers do not follow them," he said while addressing a 'Meet the Business' event with the Foreign Investors' Chamber of Commerce and Industry (FICCI) at the NBR headquarters in Dhaka.

"You, the business community and professionals, are also partly responsible. Why do you tolerate such behaviour? Their salaries come from your money, yet they don't follow government orders -- and you still put up with it," he said.

Mr Rahman went on: "The more you tolerate, the more irregularities will they commit. So, you need to change this attitude. Instead of tolerating it, you should file complaints."

Urging the businessmen to act as whistleblowers, he stated that online complaint mechanisms are now available.

The NBR chief said disciplinary actions had already been taken against several officials and more would follow.

"You can file complaints online-describe the incident and what action you seek. We will initiate inquiries and take punitive measures where necessary. You have already seen disciplinary actions being taken," he told his business audience.

He further said: "We are also receiving a lot of information from whistleblowers. But the number is still too low -- especially in the customs houses."

Although customs officials were instructed to assess product value based on transaction prices, many still rely on outdated records in determining import value, he deplored.

Such practices, says the NBR chief, are often aimed at collecting additional revenue.

"There is no need to collect extra taxes through coercion or unlawful means."

He said to the businessmen: "You'll be glad to know that I've instructed my tax commissioners and customs houses that I will no longer ask how much revenue they have collected. I don't even want to hear about it. In our revenue meetings, we no longer ask such questions."

The revenue boss said he had told them to report whether they are following the laws, rules, and instructions issued by the NBR. "If they do that, revenue will automatically come in. We need to change our mindset. Collecting excessive revenue doesn't make someone a 'star officer' deserving of a reward. That mentality must change."

He also instructed officials to clear export-import goods from customs stations within a day or two and to put an end to the practice of delaying clearance to cause demurrage losses for businesses.

Representing the FICCI, HSBC Bangladesh CEO Md Mahbub ur Rahman said customs officials often follow such valuation practices due to a prevailing culture of tax evasion.

"However, we can support the NBR by providing updated data on global market prices, as prices fluctuate frequently."

In response to the observations, NBR Member (Customs Policy and ICT) Mohammad Mobinul Kabir said an assessment committee exists at the Chattogram Customs House and a representative from FICCI will be included in the committee to represent foreign investors.

Highlighting various challenges facing companies, Mahbub ur Rahman said: "One of the main issues we face is during outward remittance. Every foreign company here has a parent office abroad, and we naturally need to send money overseas-for dividend payments, royalties, or head-office expenses."

He also laid importance on re-examining the applicable VAT, withholding tax, and other regulations on such remittances-including those related to intellectual property payments-to ensure clarity and fairness.

He also mentioned that many companies face difficulties with double taxation.

Business representatives were also critical about the imposition of taxes on services export, saying that services exports should be treated similarly to goods exports.

A representative from Daraz complained that 15-percent VAT is imposed on online product sales, while the rate of VAT is only 7.5 per cent on offline sales.

Citing an example, he said: "The VAT on mobile phones sold in stores is 7.5 per cent, it's 15 per cent for online."

The VAT rates need to be harmonised and there should be a level playing field across the business sector, he added.

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