Publish : 05 Jan 2022, 11:22 PMUpdate : 06 Jan 2022, 06:02 PM
The number of taxpayers has increased even though the tax return amount has decreased in the current FY 2021–22.
As the last day of the year was a Friday, January 2 was later announced as the last day to submit the FY21 tax returns, which will be added to the government’s books for FY22.
According to the National Board of Revenue (NBR) latest data, taxpayers who have filed last year’s tax return have deposited Tk3,281 crore in state coffers, which is Tk729 crore less in comparison to the previous fiscal year.
During that year, the amount of tax return was Tk4,010 crore.
On the other hand, 2.3 million taxpayers have submitted their annual income and expenditure returns to NBR.
The number of taxpayers who have given returns is only 37% of the total TIN holders.
Till last June, the total number of TIN holders was 6.28 million, which has now exceeded 6.7 million, according to sources.
Meanwhile, economists and the concerned individuals are not at all satisfied with the reduction in tax collection against the increasing number of TIN holders.
“The tendency to pay taxes is increasing among the people. This is great news for the state. However, the NBR has no reason to be happy, because the number of TIN holders is increasing but the amount of revenue is not,” said Economist and former Financial Adviser to a caretaker government AB Mirza Azizul Islam.
He also told Dhaka Tribune that: “I think there is a need to modernize the automation process as well as simplify the overall tax payment process. At the same time, we need to pay more attention to tax evaders. Otherwise, it will be difficult for the government to finance the budget.”
Dipak Kumar Paul, second secretary (Survey, Tax Evasion and ITP Registration, Tax Zone-15), NBR, told the Dhaka Tribune: “This year the tax fair could not be organized properly. Most importantly the big reason for the high return deposits last year was due to the scope of whitening black money. Moreover, the effect of Covid-19 has not yet decreased, which may be another reason why the submission of tax returns has been reduced a bit.”
According to the NBR, about 7% more TIN holders have submitted returns this time in comparison to last year.
In 2021, the number of total tax returns was 2.11 million.
Meanwhile, 362,000 taxpayers who could not pay the return on time have requested more time.
“NBR is working on a plan to increase the total taxpayers net. In that case, it is good news that the number of TIN holders has increased. For those who have applied for an increase in the time to pay taxes, if they submit their tax return, the total amount will increase further,” added Dipak Kumar Paul.
According to NBR sources, if all those who have asked for time to submit their returns this year finally submit their returns, then the number of tax return submissions will stand at 26.61 lakh, which will be the highest ever.
However, according to the law, the last date for submission of tax returns is November 30. NBR organizes an income tax fair throughout November but the event has not been taking place for the last two years.
Last year, taking into consideration the Covid-19 situation, the date to submit tax returns for last year was increased till December 31. Even though the revenue board had earlier said there would be no extensions after November 30.
Now citizens who want to submit tax returns have to pay the fines.
Total tax returns drop by 729C despite more registered taxpayers
The number of taxpayers who have given returns is only 37% of the total TIN holders
The number of taxpayers has increased even though the tax return amount has decreased in the current FY 2021–22.
As the last day of the year was a Friday, January 2 was later announced as the last day to submit the FY21 tax returns, which will be added to the government’s books for FY22.
According to the National Board of Revenue (NBR) latest data, taxpayers who have filed last year’s tax return have deposited Tk3,281 crore in state coffers, which is Tk729 crore less in comparison to the previous fiscal year.
During that year, the amount of tax return was Tk4,010 crore.
On the other hand, 2.3 million taxpayers have submitted their annual income and expenditure returns to NBR.
The number of taxpayers who have given returns is only 37% of the total TIN holders.
Till last June, the total number of TIN holders was 6.28 million, which has now exceeded 6.7 million, according to sources.
Meanwhile, economists and the concerned individuals are not at all satisfied with the reduction in tax collection against the increasing number of TIN holders.
“The tendency to pay taxes is increasing among the people. This is great news for the state. However, the NBR has no reason to be happy, because the number of TIN holders is increasing but the amount of revenue is not,” said Economist and former Financial Adviser to a caretaker government AB Mirza Azizul Islam.
He also told Dhaka Tribune that: “I think there is a need to modernize the automation process as well as simplify the overall tax payment process. At the same time, we need to pay more attention to tax evaders. Otherwise, it will be difficult for the government to finance the budget.”
Dipak Kumar Paul, second secretary (Survey, Tax Evasion and ITP Registration, Tax Zone-15), NBR, told the Dhaka Tribune: “This year the tax fair could not be organized properly. Most importantly the big reason for the high return deposits last year was due to the scope of whitening black money. Moreover, the effect of Covid-19 has not yet decreased, which may be another reason why the submission of tax returns has been reduced a bit.”
According to the NBR, about 7% more TIN holders have submitted returns this time in comparison to last year.
In 2021, the number of total tax returns was 2.11 million.
Meanwhile, 362,000 taxpayers who could not pay the return on time have requested more time.
“NBR is working on a plan to increase the total taxpayers net. In that case, it is good news that the number of TIN holders has increased. For those who have applied for an increase in the time to pay taxes, if they submit their tax return, the total amount will increase further,” added Dipak Kumar Paul.
According to NBR sources, if all those who have asked for time to submit their returns this year finally submit their returns, then the number of tax return submissions will stand at 26.61 lakh, which will be the highest ever.
However, according to the law, the last date for submission of tax returns is November 30. NBR organizes an income tax fair throughout November but the event has not been taking place for the last two years.
Last year, taking into consideration the Covid-19 situation, the date to submit tax returns for last year was increased till December 31. Even though the revenue board had earlier said there would be no extensions after November 30.
Now citizens who want to submit tax returns have to pay the fines.
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