Almost 1.16 crore of those capable of paying income taxes in the country still remained out of the tax net of the National Board of Revenue (NBR), according to a senior tax regulatory official.
A huge portion of the population has remained out of the tax net, said Mohammad Jahid Hasan, member for tax information management and services at the NBR.
Last year, only 2.53 million taxpayer identification number (TIN) holders out of a total of 8.3 million submitted income tax returns.
This is not satisfactory at all, Hasan said, calling on individuals to become proactive to submit income tax returns and raise awareness among the potential taxpayers.
The NBR official made the remarks at a workshop on "Customs, VAT and Income Tax management" organized by the Dhaka Chamber of Commerce and Industry (DCCI) at its office in the capital, said a press release.
At around 7%, Bangladesh has one of the lowest tax-to-GDP ratios in the world even though it posted higher economic growth in the last decade, maintaining an average annual GDP expansion of 6.4%.
Hasan said that businessmen are the partner of the NBR and the NBR is relentlessly working on reforms and modernization of various regulations to facilitate businesses.
He also called for ensuring compliance in the books of accounts to reduce litigation.
DCCI President Rizwan Rahman said considering various needs and urgency, the government sometimes has to make a few changes in the finance bill, VAT and tax systems through statutory regulatory orders.
"And as an entrepreneur, a businessman has to have a clear knowledge of these issues."
DCCI Senior Vice-President Arman Haque, who chaired the workshop, said there should be harmony between taxpayers and tax collectors.
He urged the NBR to widen the tax net to increase the revenue collection.
The NBR generated more than Tk300,000 crore in the last fiscal year, which ended in June.
The collection target has been set at Tk370,000 crore for the current fiscal year.
Snehasish Barua, adviser of the DCCI's standing committee on customs, VAT and NBR, and MBM Lutful Hadee, joint convener of the committee, presented papers at the event.
