NBR aims to boost tax-to-GDP ratio by expanding tax net: Chairman

The National Board of Revenue (NBR) is working to enhance the tax-to-GDP ratio by steadily expanding the tax net which is evident by the statistics over the last four years, its Chairman Abu Hena Md Rahmatul Muneem said today (15 February).

"As a result of NBR's timely action, the number of income tax return filings in 2024 stands at about 37 lakhs, compared to 21 lakhs in 2020. Additionally, in 2024, the number of VAT returns is 5 lakhs, up from only 2 lakhs in 2020," he said during a pre-budget discussion with members of the Chattogram Chamber of Commerce and business leaders in the port city.

He further said the NBR is working to expand the tax net so that the tax burden is not concentrated on single tax payers.

The NBR chairman said, "As part of the preparation for LDC graduation, the government is trying to provide special incentives to the ICT, advanced technology, goods, and services sectors to boost the production of high-value products. The government is also assisting heavy industries in increasing the production of luxury goods in the country."

Chattogram Chamber President Omar Hajjaj said at the programme that the ratio of tax to GDP should be increased. However, it is necessary to consider whether private sector businessmen are capable and prepared to handle the pressure amidst the current economic crisis.

"A proper plan needs to be devised on how to increase the number of taxpayers without imposing additional tax burdens on certain taxpayers," he added.

He also noted that due to the complexity of various sections of the tax policy, the tax rate for private companies is fixed at 27.5%. However, in reality, the total tax burden amounts to more than 40%-50% across all types of businesses.

He emphasised the importance of creating an investment-friendly fiscal policy and environment to attract both domestic and foreign investment, thereby ensuring the government's investment in infrastructure development yields fruitful results.

CCCI's Senior Vice-President Tarafder Md Ruhul Amin, emphasised the need for maintaining reasonable levels of tax and VAT. 

He said, "Contributing through taxes and VAT is crucial for the country's development. 

"However, these rates need to be kept within tolerable bounds. Simplifying the tax payment process is essential to ensure that businessmen encounter no unnecessary hurdles or harassment." 

Additionally, he called for non-profit and service-providing organisations to remain exempt from taxes.

Senior officials of the NBR, commissioners of customs, VAT, and income tax departments of Chattogram, chamber directors, representatives from the Bangladesh Jewelers Association, Fruit Traders Association, Bangladesh Plastic Goods Manufacturers & Exporters Association, Rehab, and business leaders from various sectors were also present at the discussion.