Business demands end to harassment by tax officials

The Dhaka Chamber of Commerce and Industry urged the National Board of Revenue authorities to take steps against alleged harassment by field-level tax officials in the name of VAT collection.

It also requested the NBR to ensure a taxpayers-friendly culture, simplify tax collection process and help the government generate revenues.

The call was made at a launching function of the “DCCI Tax Guide 2015-16,” held at the NBR headquarters in Dhaka yesterday.

The guide covers up-to-date information on income tax, customs duty, supplementary duty and value added tax to help entrepreneurs, banks, non-banking financial institutions, insurance companies and other corporate business houses to understand the country’s taxation system.

“When there is no business, how can we pay VAT? In last two years we had no business, small enterprises had to run business with difficulties,” said DCCI President Hossain Khaled at the function.

He alleged that the field-level NBR officials were pressurising them to pay VAT despite “the tough time for business.”  “We demand the NBR address the problem and develop a taxpayers-friendly culture.”

The DCCI president laid emphasis on simplification of the tax collection system and launching an awareness campaign to encourage tax payment.

He said the DCCI could help the NBR to organise awareness programmes like observing Tax Day or Tax Awareness Day.

DCCI director Abdus Salam urged the NBR officials to adopt “business-friendly manner.” Another  director of the chamber AKD Khair Mohammad Khan said the NBR could organise VAT fair like annual income tax fair to encourage people to pay VAT.

DCCI Vice President stood against the VAT on trade licence fee and demanded keeping the tax only on earnings from trading.

NBR Chairman Nojibur Rahman said the NBR has taken a zero tolerance policy against any harassment of taxpayers and corruption by the tax officials.

He said the VAT commissioners concerned would be directed to organise a dialogue on revenue collection in their respective offices.

Nojibur Rahman, however, urged entrepreneurs not to dodge taxes and help the government mobilise revenues necessary for a country’s development activities.

‘NBR to achieve revenue target this year’

NBR chairman ruled out any worries about meeting this fiscal year’s revenue target, which is Tk1,76,370 crore.

“We are working together and hope we will exceed the target this year.”

Despite missing of the first quarter target, the NBR chief seeks to be optimistic about the collection rest of the year.

During the July-September period, the revenue collection was Tk5,798.54 crore or 15.81% short of the target set for the quarter.

“The collection usually remains lower in first few months of a fiscal year, but it gradually increases in the following months. But this fiscal year the NBR had to set equal targets for all quarters due to the Annual Performance Agreement,” Nojibur Rahman said.

“There were some challenges involved with imports during the first quarter. Besides, some of the government agencies didn’t deposit the VAT they collected to the government exchequer in due time. All these factors cast a negative impact on the collection,” NBR chief claimed.