MCCI stresses direct tax collection for higher revenue generation

Business leaders at a programme on Thursday said Bangladesh needs to change from the current dependence on indirect taxes and focus on direct taxes for revenue generation in the context of its graduation from a least developed country to a developing one in the first place and then to a developed one, a release said.   

They also hoped for National Board of Revenue's (NBR's) cooperation and support in the chamber's pursuit of extending the validity period of trade and other business licenses to three to five years from the current one year.     

"Bangladesh has one of the lowest tax to GDP ratios in the world. As the country advances towards achieving the coveted 'developing country' and ultimately 'developed country' status in the future, it has to shift away from the current dependence on indirect taxes and instead focus on direct taxes for revenue generation," they said at a discussion meeting organised by Metropolitan Chamber of Commerce and Industries, Dhaka (MCCI), in partnership with Tax Zone 15, Dhaka.

The discussion meeting titled 'Payment of Taxes, Filing of Returns and Compliance with Provisions of Deduction of Tax at Source: Changes Brought by the Finance Act, 2022' was organised at MCCI Motijheel office with the objective to help understand the importance of the relevant issues of Finance Act, 2022, the accurate filing of income tax returns, compliance with the rules of deduction of tax at source, and also demonstrate use of the electronic tax deducted at source (eTDS) system. 

Saiful Islam, President, MCCI, chaired the meeting while AKM Hasanuzzaman, tax commissioner, Tax Zone-15, National Board of Revenue (NBR), was the chief guest at the event. 

In his speech, Saiful Islam said that the global economy was going through challenging times of late, because of the pandemic, and the Russia-Ukraine war. The Finance Act, 2022, took all such global challenges into consideration. 

He praised the NBR for accepting MCCI's suggestions for updating the tax system. Implementing online and automation systems could save cost and time for businesses, he noted. 

Wakil Ahmed, joint commissioner of taxes, Tax Zone-15, Dhaka made two presentations– one was on the changes brought in the Income Tax Act through the Budget and Finance Act, 2022, and another on tax deducted at source.

Wakil Ahmed said that every institution was working on behalf of the government. Tax deducted at source was one of the highest sources of the government's revenue generation. He hoped everyone would support the implementation of the pertaining rules and regulations. 

Ariful Haque, deputy tax commissioner, NBR, elaborated on the eTDS system. At present, there is scope for updating information on the eTDS platform by source tax deducting authorities. Subsequently, savings certificates and bank account interests will also be added for deduction in the eTDS platform, he added. 

During the open discussion, Saiful Islam said that implementing the eTDS system would mean greater automation and improve the cooperation between the government and businesses. 

MCCI's immediate past President Nihad Kabir discussed issues related to the certificates of advance income tax and income tax return submission.   

In his speech, Hasanuzzaman hoped that the discussion would make it easier for both taxpayers to pay taxes and tax authority to collect taxes. The private sector and the NBR needed to trust and support each other and embrace the eTDS system, as it would mean the betterment of the society.

He emphasised on the role of tax deducted at source, sector-wise tax deposit, and the capacity of the NBR.