Automation of the country’s tax system will be of high priority in the next fiscal year to meet revenue collection target, said Finance Minister AMA Muhith during his budget speech yesterday.
The automated system will facilitate sharing of information between three departments of the revenue authority, he added.
Muhith said emphasis will also be given on resource mobilisation which includes developing a tax-friendly atmosphere, enacting new laws and recruiting necessary workforce.
He believed the reform initiatives taken will strengthen and expand tax collection activities of the National Board of Revenue.
Value Added Tax (Vat) Act will come into force in FY2015-16 and the reform agenda to revise the income tax law while the customs act will be enacted during the tenure of the present Parliament, Muhith asserted.
“The government has taken up the reform initiatives to meet its revenue target for the fiscal year 2014-15.”
The proposed tax revenue target is Tk1,49,720 crore, which includes Tk57,500 crore from income tax and Tk55,580 crore from Vat and excise duties and Tk36,640 crore from customs duties.
“The government is working for better tax services so that taxpayers are motivated to pay more tax.”
About reform initiatives, the minister cited the introduction of Q-Cash network to help taxpayers pay duties online.
He expected the project of online submission of returns will be completed by the end of 2015.
The improved tax service centres have already been introduced in Dhaka, Chittagong, Sylhet, Khulna, Comilla and Rajshahi, Muhith said.
“Three more such centres will be opened in Rangpur, Bogra and Barisal very soon while other districts will see it in phases.”
Regarding different steps taken for revenue collection, he said a Transfer Pricing Cell will start working from July at the NBR.
It will be aimed at preventing money laundering and tax evasion.
Vat and Supplementary Duty Act, 2012 will be implemented from July 2015, Muhith said.
About customs, he said the paperless customs procedure ASYCUDA World System of customs clearance is in operation at all major customs houses.
He said the coverage of the system will be extended soon to other land customs stations.
Works are underway to introduce tax administration retrieval system at the Central Survey Zone, he said adding it would enable collection of information from Bangladesh Road Transportation Authority (BRTA), land registration offices and other related offices.
“Such steps will also help expansion of tax network and prevent tax dodging.”
About NBR workforce, finance minister mentioned around 9,000 new posts have been created and recruitment is on progress to ensure smooth service.
Muhith added the government plans to organise training and awareness programmes for both taxpayers and NBR officials.
Such awareness campaigns and skills improvement training will help to mobilise domestic resources changing the revenue body into a business and tax-friendly organisation, finance minister hoped.