Even though the country's GDP has quadrupled and revenue collection has grown significantly over the past 14 years, Bangladesh still relies primarily on indirect taxes for the majority of our revenue, said experts at a discussion on taxes.
The National Board of Revenue (NBR) organized the National VAT Day, VAT Week program, and award-giving ceremony of the highest VAT payers on Saturday at a hotel in the capital Dhaka.
“We started with a GDP size of $100 billion 14 years ago. Now the economy has quadrupled to $465 billion. Similarly, per capita income increased from $686 to $2,864. During the last 14 years, revenue collection has achieved significant growth and thanks to taxpayers for their support, Finance minister AHM Mustafa Kamal said as a chief guest of the occasion.
“Our goal is to move from a middle-income country to an upper-middle-income country by 2030 and a developed one in 2041. To achieve this goal, taxes must be paid. If you don't pay taxes it is not possible to work for the backward people,” he added.
NBR VAT audit member MD Sahidul Islam delivered the opening remark at the event and VAT policy member Zakia Sultana presented the keynote paper at the event.
In her presentation, Zakia Sultana said: “In FY22, Tk3,01,633 crore of revenue has been collected by NBR. Of the amount, about 65% to 67% of revenue is derived from indirect taxes (VAT and customs).”
NBR chairman Abu Hena Md Rahmatul Muneem presided over the event.
He informed that NBR has achieved remarkable revenue growth from the last two fiscal years around 21% and 16% respectively.
Automation, policy support like reducing the tax rate, widening the tax net and skill development of the revenue officials are the key objectives of the revenue board to boost the revenue sourcing in the coming days.'
“For ensuring the value-added production and promoting the ‘Made in Bangladesh' title the revenue board has offered tax policy support for a number of sectors. And to fulfill the indicators of the developed country status we have to cut off the existing tax facilities in coming days that offer the industries development,” he said.
As a special guest Md Jashim Uddin, president of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) said the tax policy support for the green industry, recycling industry and backward linkage industry should continue to ensure the sustainable growth of the country.
Source tax adjustment facilities should be made easier for the business, he also added.
“NBR's automation projects including customs automation, bond automation, VAT automation like electronic fiscal device system have been playing a remarkable contribution to facilitate the businesses and boost the revenue collection.”
In order to encourage VAT compliance practices, he also suggested setting up VAT offices at the Upazila level. He also urged the government to properly investigate complaints of hassles experienced by a group of revenue officials in order to strengthen the relationship between businesses and revenue officials.
Highest VAT payers
The highest VAT payers from the production sector are Olympic Industries Limited (Kanchpur, Narayanganj), IBN SINA Pharmaceutical Industry Ltd (Shafipur, Gazipur) and SMC Enterprise Limited (Banani, Dhaka).
In the business category Walton Plaza (Chandna, Gazipur), Agora Ltd (formerly Rahimafrooz Superstores Ltd) (Mohakhali, Dhaka), and Unimart Ltd (Gulshan, Dhaka) have become the top VAT-payers for the year.
bKash Limited (Jahangir Gate, Dhaka Cantonment), International Finance Investment and Commerce Bank Limited (Purana Paltan, Dhaka), and Nagad Ltd (formerly Third Wave Technologies Ltd) (Banani, Dhaka) will get the award in the service category.
However, on December 10, all the NBR's regional offices countrywide observed the 12th VAT Day.
