National Board of Revenue (NBR) Chairman Md. Ghulam Hussain has underscored the need for aggressive income tax collection drive to meet a revenue target of Tk149,000 crore to be set for the next fiscal year.
As the sector has the potentiality to be the largest sector in revenue collection in the coming days, the NBR finds that it will have to manage 22% growth in revenue (despite a huge jump) in FY2014-15 to support the GDP growth target of 7.3%, he said. The NBR chief came up with the observation while inaugurating an eTIN service center at the BCS Tax Academy at New Eskaton road in the capital yesterday.
“We have found huge potential in revenue earnings, mostly in income tax, as most of the areas are still remained untapped due to our failure to focus properly,” he said.
“As per our estimate, income tax would be the largest sector of revenue earnings in the coming days while local Value Added Tax (VAT) will be the second one and the customs duties the third.” Disclosing the estimated break-up of the revenue target for FY14-15, Hussain said: “If we disclose a figure, which is very close to the reality that would be 38% revenue from income tax, 35% from VAT and 27% from customs duties.”
In response to a query, the chairman said the board was working on it to introduce filing of income tax returns and e-payment from July 1, 2015.
“We will start piloting of e-return filing in January next and the project along with e-payment method will come into operation from July 1, 2015.”
Terming the existing e-payment systems insufficient, the NBR chief said: “The existing e-payment methods in different banks are not good enough. We are working on it to build a linkage among all the banks and to introduce the electronic signature. Some work in this process is still remains pending, which will be completed within the remaining timeframe.”
He said the NBR is now passing through a hesitating moment as it has to ensure increased revenue along with giving protection to the local industries. “In one hand, we have received around 5,000 proposals from different sectors while around 4,050 of them wants duty cut, and on the other hand, we have to ensure increased revenue collection in the coming fiscal year.”
The chairman also admitted most of those duty-cut proposals were logical to him as those were very much supportive for the local industries, investments and trades.
“We will ensure increased revenue collection in several steps. We have already started expanding our tax offices with a focus on automation like e-TIN. NBR is working on with the integrated automation system, which will come into operation from July 1 this year and this is likely to be the first fully integrated automated office in the country.”
The NBR chief clarified that the NBR was not focusing in the installation of Electronic Cash Registrar system as the case has been pending with a Sylhet court on the use of ECR.
Since its introduction on July 1, 2013, the electronic tax-payers identification number (eTIN) has so far registered 12 lakh taxpayers, including about 3 lakh new ones, he added. “NBR finds at least 6 lakh existing taxpayers to be registered with the new system.”
He said the newly established eTIN centre at BCS Academy would be able to serve at least 500 to 600 visitors a day.
