Implement New Income Tax Law Will Shift Focus from Import Taxes

The National Board of Revenue (NBR) has reduced import taxes on onions and potatoes to address rising prices and boost supply. Effective until November 30, tariffs on onions have been cut to 5 percent and on potatoes to 15 percent. This move aims to make these essential items more affordable.

Following a meeting between the NBR and FBCCI, new agreements have emerged. FBCCI presented a list of complaints and issues related to harassment by taxmen. They also called for the refinement of contradictory laws, the establishment of hotlines for immediate resolution of harassment complaints, and the digitization of tax and VAT collection to enhance efficiency. Additionally, FBCCI sought improved relations with NBR to better facilitate Alternative Dispute Resolution (ADR) processes.

For FY 23-24, the National Board of Revenue (NBR) reported a revenue collection figure of Tk 289,376 crore, while the Ministry of Finance (MoF) reported Tk 277,925 crore—a significant difference of Tk 11,451 crore. A similar issue is evident in data published by the Implementation Monitoring and Evaluation Division (IMED) of the Ministry of Planning (MoP) and the MoF. The IMED reported that ministries utilized Tk 125,315 crore of the Annual Development Programme (ADP) in FY24, while the MoF reported only Tk 92,126 crore, resulting in a gap of Tk 33,189 crore, which even stood at Tk 41,136 crore in the first 10 months of FY23.

A group of NBR officials protested against their chairman, accusing him of misusing his power to harass Nobel laureate Dr. Muhammad Yunus by filing a false tax evasion case. They demanded a criminal case against the chairman and called for reforms within the NBR, including appointing officials from the customs and tax cadres instead of the administration cadre. The protest comes after a previous tax evasion case against Dr. Yunus, which resulted in a judgment against him and recovery of the alleged amount.

The Bangladesh Civil Service (Taxation) Association has urged that the National Board of Revenue (NBR) chairman be appointed from within its experienced members, stressing the importance of having a leader with deep revenue management knowledge. They also called for the tax department to remain apolitical and for efforts to recover illegally smuggled money. 

After 53 years of independence, Bangladesh is recognized as one of Asia's next emerging economies, with the potential to become a middle-income country. However, significant growth opportunities remain. Despite a large population of around 180 million and a per capita income of $2,784, the tax-to-GDP ratio remains low at less than 8 percent, compared to the regional average of over 15 percent. This highlights the need for continued efforts to improve economic performance and address fiscal challenges.