Finance Minister AMA Muhith Monday expected that the income tax payers would stand at minimum 1% of the total population in the financial year 2014-15, when income tax would become the largest revenue earning source.
“We are expecting to have 1% of the population under the income tax net in financial year 2015 and the number would gradually increase to at least 5% of the population in the following years,” he told the launching ceremony of E-TIN registration process at a hotel in Dhaka.
“Income tax would be the second largest source of revenue income this year and in FY15, it would be the largest source of revenue.”
The minister informed the function that the number of income tax payers were only around 700,000 when the present government assumed office and the number increased to 1.1m as of now.
According to the newly introduced e-tin system, people can now register for income tax payment online, which is expected to reduce hassles for the taxpayers and prevent issuance of fake Taxpayer’s Identification Number (TIN).
Existing and new taxpayers are requested to log in to www.incometax.gov.bd for online TIN registration. Information Minister Hasanul Haque Inu and FBCCI President Kazi Akram Uddin Ahmed also spoke on the occasion, with NBR Chairman Ghulam Hossain.
According to the new system, NBR will have an automated database for TIN holders. The existing TIN holders will have to register with the online system within December 31 and with this process, the existing 10 digit TIN will be replaced with 12 digits.
People will need national identity card or passport for receiving TIN certificates. There would be no effectiveness of old manual (10 digits) TIN from January 1 next.
Information Minister Hasanul Haque Inu said: “E-TIN registration system will not only determine the number of total tax payers, but also reduce time, hassle, toil and could ensure maximum service. It will also ensure an automated database where all documents of taxpayers would be kept.”
“I think, there are minimum around 30,000 people who have the capability to pay minimum Tk10m tax annually. If our revenue board could try to collect it, they can collect Tk300bn from this people and can contribute to the national exchequer fund,” he said.
NBR chairman Ghulam Hossain said the revenue authorities are heading towards automation step by step. “We are expecting to complete it within this year. Now, we are working on integration between income tax, VAT and tax departments.”
FBCCI President Kazi Akram Uddin Ahmed said the income tax target of Tk483bn, which is the 35% of the total revenue target, would not be difficult to collect with the introduction of the E-TIN system.
A team of NBR is working on automation of TIN database with assistance of International Finance Corporation (IFC). The web portal will be linked with the National Identity Card database of the Election Commission to verify individual applicant while corporate taxpayers’ application will be checked with the database of the Registrar of Joint Stock Companies and Firms.
