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NBR to monitor tax-evading private sector employees

  • Published at 09:33 pm July 6th, 2018
The National Board of Revenue (NBR) office in Dhaka Mehedi Hasan
The National Board of Revenue (NBR) office in Dhaka Mehedi Hasan/Dhaka Tribune

Currently, the organizations are submitting the statements and details of tax collection at source.

The National Board of Revenue (NBR) has asked all private organizations to inform the board about their employees' income tax information each year—to curb tax evasion, increase the number of income taxpayers, and increase the amount of tax money received.

The government’s revenue-collecting authority has already inducted a new clause in the Income Tax Ordinance.

The 108 (A) clause says each year, in April, all the appointing organizations must submit the income tax information of their employees.

Currently, the organizations are submitting the statements and details of tax collection at source.

The pay-roll tax deducted from the salaries and wages of the employees will have to be listed in detail, as per the new clause, and submitted once a year.

As per NBR’s statistics, three percent of income tax, known as direct tax, comes from payroll tax. The appointing authority of an organization deducts the tax, at source, every month from the salaries and wages of its employees. Later, this money is deposited in NBR accounts.

An NBR senior official said this move will help the revenue collecting authority to identify more taxpayers in the coming days—in addition to detecting tax evasion by any organization. 

"This move, called internal survey, will be able to detect evasion and bring more taxpayers under the tax net," he said.

Currently, the number of eTIN holders in the country is more than 35 lakh, and the government wants to take the number to 1 crore in the next five years, as Finance Minister AMA Muhith said in his budget speech.

NBR Member (Tax Survey and Inspection) Dr Mahbubur Rahman recently sent a letter to its field offices in relation to this—and asked them to act accordingly.

Meanwhile, NBR has brought 538,911 new taxpayers under the tax net in the first 10 months of the outgoing fiscal year—against the target of 526,000.

Now the tax-GDP ratio of the country is just over 10%— compared to 15% in neighbouring countries.