The National Board of Revenue (NBR) was urged to simplify the processes for Alternative Dispute Resolution (ADR) for gearing up the revenue collection.
The revenue authorities was also requested to establish a strong ADR cell with a secretariat and strengthen the independent role of facilitators to vibrant the ADR for faster settlement of pending cases out of the court.
Currently, around 25,000 cases are pending with the Supreme Court involving around Tk31,000 crore revenues in income tax, customs duty and value added tax. NBR data shows that the pending revenue with court cases is 17.55% of the total revenue target of Tk1,76,371 crore for the current fiscal year 2015-16.
Public private dialogue platform Business Initiative Leading Development (BUILD) chief executive officer Ferdous Ara Begum made the proposal to NBR at the second Taxation Working Committee (TWC) meeting held at NBR headquarters yesterday. NBR senior member Farid Uddin chaired the meeting.
The meeting also discussed the need for simplification of policies for audit, supportive tax for electrical and electronics manufacturing and motor cycle industries. It also underlined the need for collaboration between the private and public sector engagement, said a BUILD press release.
NBR member Farid Uddin said a consolidated formula of the entire ADR can be developed to extend benefits of ADR in the field of VAT where BUILD can also work in the field.
In regards to audit, Ferdous Ara Begum said requirement of commissioner approval in assessing all types of omission or errors is a cumbersome and time consuming process.
She suggested NBR to empower joint commissioner of taxes to approve the issues, as like India, to save times of the taxpayers in audit process where the case is below Tk1million. In case of sensitive cases, commissioner’s approval can be required, she suggested.
NBR member (tax admin) Md Abdur Razzaque said a risk based audit system is already in progress for implementation and NBR will go for automation immediately.
Addressing the meeting, Dhaka Chamber of Commerce and Industry (DCCI) President Hossain Khaled praised the concept of Tax Card and requested NBR to turn the card into a smart card so that all required information of the entrepreneur can be preserved in the card to reduce hassles.
BUILD Chairman Asif Ibrahim urged NBR to host taxation working committee meetings at regular intervals.