Only 5% of country’s population pay tax: NBR chairman 

Only 5% of the country's total population pay tax, the newly appointed National Board of Revenue (NBR) Chairman Abdur Rahman Khan said today (4 September).

"The rate is 23% in India," the NBR chairman said in a view exchange meeting with a delegation of Dhaka Chamber of Commerce and Industry (DCCI), led by its President Ashraf Ahmed, at NBR headquarters in Dhaka's Agargaon, reads a press release. 

Emphasising on expanding the tax net, Abdur Rahman said, "The maximum revenue comes from the existing taxpayers and a large section of the society is out of the tax net, thereby increasing the pressure on the existing taxpayers." 

He noted that if the non-taxpayers remain out of the net year after year, the existing taxpayers will be discouraged from paying tax. "NBR will work on priority basis to expand the tax net in the next six months."

The NBR chairman further said, "Without reducing tax collection target, the revenue management will be streamlined along with rationalising the tax rate." 

Raising the issue of harassment of businesses by customs authority, the DCCI president said, "Currently there is a provision of fine up to 400% if the HS code is incorrect even if the product description is correct. For this, businesses often face harassment."

"If the product's description or HS code is correct there should have been an opportunity to amend and withdraw the declaration of goods filed at the assessment stage by amending the related section of the existing Customs Act," he added.

Ashraf further said, "Complicated tax management system hinders the businesses of the Cottage, Micro, Small and Medium Enterprises [CMSMEs]."

He suggested to ease and formulate a CMSME-friendly tax structure and also requested for the income tax system to be brought under the automated system with the aim of simplifying tax payment and all tax-related matters.

DCCI Senior Vice President Malik Talha Ismail Bari and Vice President Md Junaed Ibna Ali, Members of NBR Md Masud Sadiq, AKM Badiul Alam and GM Abdul Kalam Kaikobad were also present on the occasion.