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Promising new steps for a flourishing economy

Tax net to be widened for revenue increase


Bangladeshpost
Published : 21 May 2019 05:13 PM | Updated : 06 Sep 2020 11:00 PM

In order to increase revenue collection of taxes, the National Board of Revenue (NBR) is planning on widening the tax net instead of increasing the tax rates for the 2019-20 fiscal year. As a result, the tax revenue will greatly increase without putting any additional pressure on current taxpayers. 

According to a source from the NBR, the revenue authority is hoping to increase the revenue collection in all tax regimes – Tax, VAT, and Customs. This will not put any impact on the price of the daily essentials.  The source added that the Finance Minister will put directions in his budget speech about the expansion of tax offices to upazila level to bring the wealthy people under the net. 

This is an often overlooked segment of society that is eligible for tax. However, previously due to the lacking of the tax monitoring bureau in upazila level it was not possible to bring them under the tax bracket. It needs no emphasizing that there are many wealthy farmers, landowners and business people in upazila levels whose contribution towards tax collection will significantly increase revenue. 


One can hope that the changes

 in the budget will help Bangladesh

 reach its goal to become an upper middle

 class economy country within 2030


The next budget will also put directions on the administrative reforms of NBR, including introduction of UTDS system, forming of separate monitoring zone, forming of modern tax information unit, introduction of digital audit system. It is true that digitalization and stricter monitoring systems will go a long way in increasing tax revenue as the government is now taking necessary steps to eliminate tax evasion. 

It is good news that the Revenue Board is planning to uphold tax exemptions from certain local industrial sectors such as refrigerators, air conditioners and motorcycles in order to promote growth in those sectors. VAT exemptions from the production of palm, soybean oil, etc will also be offered in order to keep the inflation rate under control.

These bold and innovative steps by the NBR are sure to pay off in the upcoming fiscal year and lead our nation towards prosperity. One can hope that the changes in the budget will help Bangladesh reach its goal to become an upper middle class economy country within 2030 by helping us achieve the required tax-to-GDP ratio.