Top taxpayers call for lowering tax rates

Top taxpayers in the country have called for lowering tax rates to bring more people under the tax net and to increase the government's revenue collection.

At an award ceremony organised by the National Board of Revenue (NBR), they also urged the authorities to simplify the existing tax payment system.

The NBR awarded the top 141 taxpayers in various categories at the national level at the Officers' Club on Wednesday. Some 65 top taxpayers of the districts under the Dhaka division were also awarded at the programme.

SM Khaled, managing director of Snowtex Outerwear Ltd, was awarded as one of the top taxpayers in the RMG category.

He told The Business Standard, "The lower the tax rate, the more people will be willing to pay taxes. Besides, the tax payment system also needs to be made easy."

Finance Minister AHM Mustafa Kamal, the chief guest at the event, admitted that there are still some difficulties in the tax payment system. "The system has not been fully automated yet. We are not at the level of developed countries. But there has been much development in the last 10 years," he said.

At the event, Sakib Al Hasan spoke as a top taxpayer in the sportsmen's category. Professor Pran Gopal Datta and Shykh Seraj also spoke as top taxpayers in the doctors' and journalists' categories, respectively.

According to sources, the NBR has brought a large number of people under the tax net in the last few years. The number of Tax Identification Number (TIN) holders has increased more than four times in the last 10 years. However, the number of tax return submissions has not increased in comparison. In 2021-22FY, around 25 lakh returns were submitted.

Fatima Yasmin, senior secretary of the finance division, said at the programme that the tax-to-GDP ratio in Bangladesh is the lowest among the countries of Asia.

NBR Chairman Abu Hena Md Rahmatul Muneem said, "The tax net in the country should be expanded by simplifying the tax payment system."

He further said the use of secondary sources is being increased to collect the right amount of taxes from investors and house and car owners.

Seven taxpayers from each city corporation and district of the country have also been honoured this year in the top taxpayer, long-term taxpayer, women and youth categories.

Tax return submission deadline 1 Jan

Meanwhile, the National Board of Revenue (NBR) has extended the tax return submission deadline to 1 January 2023. Taxpayers will not have to pay any fines if they submit returns within the date.

The deadline has been extended since 30-31 December is the weekend. 

Back in November, the NBR extended the submission deadline until 31 December this year as responses from taxpayers were much lower than expected.