NBR moves to simplify tax process facilitating investment

National Board of Revenue (NBR) has taken initiatives to ease taxing process removing unnecessary complications with a view to attracting especially foreign investments.

Abu Hena Md Rahmatul Muneem, Chairman of NBR, said the government has instructed them to simplify the tax collection process to encourage foreign investment in the country.

He was addressing a pre-budget meeting at the NBR building in the capital's Agargaon on Sunday.

"One of the major challenges will be attracting Foreign Direct investment (FDI) for which it is important to make the processes easier. We are lagging behind in this area," he said.

He also said that the International Monetary Fund (IMF) has instructed to make all payments of tax, VAT, customs duty through e-payments.

“Everything the IMF recommended us is for our improvement. As we fail to accomplish some tasks quickly, IMF gives suggestions,” he said.

The NBR Chairman also said that board of revenue is taking steps as part of their target to expand the tax net also.

"Simplification of return form and submission of online tax were given importance in the draft Income Tax Act," he added.

The Taxes Bar Association has proposed to raise the tax-free income limit for individual taxpayers and making the income tax rate commensurate with the taxpayer's cost of living, citing reckless rise in the prices of daily necessities triggered by Covid-19 impact and Russia-Ukraine war.

However, Bangladesh Tax Lawyers Association has suggested reducing corporate tax by 7.5 percent in all sectors.

Bangladesh Shipping Agents Association was of the opinion for reducing the rate of tax at source on shipping agency commission from 8 percent to 5 percent.

Association of Mobile Telecom Operators of Bangladesh (AMTOB), the national trade organisation representing all mobile telecom operators in Bangladesh, spoke on the need for curtailing corporate tax rate on mobile phone operator companies in the FY2023-2024 budget.

They demanded reduction in minimum tax from 2 percent to 1 percent.

"The high rate of corporate tax should reduce. The general corporate tax rate in the country is 27.5% for unlisted companies and 20% to 22.5% for listed companies. Despite essential service, Bangladesh's mobile sector has to pay a high rate of corporate tax. The tax rate is 40% for listed mobile operators and 45% for unlisted companies," they said.

During the meeting, AMTOB presented a 16-point proposal on telecom-related income tax, value-added tax, import duty, and supplementary duty.