Finance Minister AMA Muhith yesterday instructed the National Board of Revenue to work on introduction of a “fixed day” as the deadline to file income tax returns by the taxpayers.
All the taxpayers across the country will submit their tax returns on the specific day, which will have no extension, the minister said at the inauguration of Winter Income Tax Fair yesterday. National Board of Revenue has organised the three-day event at the city’s Officers Club.
“Many countries have this system in which people have to pay income tax on the designated day and this never changes,” Muhith said and asked the tax authorities to work on it and introduce the system in Bangladesh by 2018.
In the United States, the tax day is usually on or around April 15. However, the deadline is extended sometimes to accommodate holidays.
“I think we should think like this. Let’s fix a day which will not be extended. The day will be a government holiday so that people can pay their income tax by filing income tax returns in festive mood,” finance minister said.
For the first time, the winter edition of tax fair has been organised in the country. It’s being held at seven divisional headquarters, aimed at encouraging people to pay income tax.
Finance minister underscored the need to simplify the income tax return form as many people still find it a hassle and face difficulties paying taxes.
“We have introduced a one-page income tax return form. It should be made easier so that taxpayers are able to file their form by themselves,” he said asking the NBR to look into how much easier can it be made.
Addressing the function, Bangladesh Cricket Board (BCB) President Nazmul Hasan said the tax fair has been gaining popularity as it ensures taxpayers-friendly and service-oriented atmosphere providing one-stop services to then taxpayers.
“Internal revenues have to be the major source of government income if we want to ensure an economy necessary for sustainable development,” he said.
Nazmul said in Bangladesh income tax is a little more than 3% of the GDP, which needs to be increased.
Quoting from a research report, he said: “Seven percent of the total population in the country earn more than $400 a month. In that calculation, the number of taxpayers should be at 12m. But only some 2m people have TIN and 1.4m of them file returns. We have to increase the numbers through organising this type of programmes and through launching awareness campaigns.”
NBR Chairman Nojibur Rahman said the board is trying not to impose more tax on existing taxpayers, rather to increase the tax base.
Usually, the NBR holds a week-long national income tax fair across the country on September 16-22 every year, but the winter edition of income tax fair had been introduced as the NBR saw a huge interest among taxpayers in such events.
Along with two venues in Dhaka, the tax fair began yesterday in divisional headquarters of Chittagong, Khulna, Rajshahi, Sylhet, Barisal and Rangpur.
In Chittagong, the fair is being taken place at the Agrabad Government Office 2.
Chittagong City Corporation Mayor AJM Nasir Uddin inaugurated the fair.
The inaugural function was attended, among others, by National Board of Revenue Member Farid Uddin, Chittagong Metropolitan Police Commissioner Abdul Jalil Mondal, Chittagong Deputy Commissioner Mesbah Uddin, Tax Commissioner (Appeal) and Convener of the fair Kazi Emdadul Haque and Tax Commissioner Apurba Kanti Das.
People can receive different one-stop services including registration with electronic taxpayers identification number (eTIN), re-registration with eTIN, submission of income tax returns and online payment facilities from the fair venues. The fair will be open from 10am to 5pm everyday.
Four NRBs awarded with CIP card
The government at the function awarded four non-resident Bangladeshis, including three from a same family, with Commercially Important Person (CIP) cards recogniding their contributions to the country’s economy.
The government delivered the CIP cards to the expatriates for their contribution in 2015 through making highest investments in development bonds under “US Dollar Premium Bond” and “US Dollar Investment Bond” schemes.
The investors are Zainul Haque Sikder, Monowara Sikder, Rick Haque Sikder and Md Aftab Hossain. Zainul Haque is the chairman of National Bank Limited while Monowara Sikder and Rick Haque Sikder are directors.
The CIP card holders enjoys a number of government facilities for one year since the card issued.
The government in 2002 introduced US dollar premium and investment bonds to encourage the NRBs to invest in the country’s economy. Any NRB can avail the CIP status if he or she invests $1m or more in the US dollar premium and investment bond schemes, as per the rules.