Only one-third of TIN holders file tax returns
The NBR made it mandatory for all TIN holders to submit returns this year
Only less than a third of the over 85 lakh taxpayer identification number (TIN) holders have submitted their tax returns despite it being made mandatory by the National Board of Revenue (NBR) this fiscal year.
Experts have blamed it on a decrease in income for a group of people due to the country's economic slowdown and a lack of awareness about income tax return filing and monitoring.
After the tax return filing deadline ended, the NBR has so far received tax returns from 27.51 lakh TIN holders, an increase from 25.46 lakh in the previous year.
However, the revenue board had expected to receive 45 to 50 lakh tax returns because of the steps it had taken in the last budget.
Besides, there is an opportunity for new taxpayers to pay tax without penalty until next June. As a result, most of the newcomers did not submit their returns until December.
Every year, taxpayers have to submit the accounts of their income and expenditure from July to June to the tax office by the following November.
However, due to various reasons, including the prevailing economic situation this year, the deadline was extended by one month to 31 December. As 31 December fell on a weekend, taxpayers had the opportunity to file their tax returns without interest or penalty until the next working day on Sunday, as per rules.
"Already 27.51 lakh returns have been filed. Another four lakh TIN holders have applied for time. They are also considered potential return filers. Furthermore, new TIN holders have until June of this year to apply. In total, this time the returns will exceed 40 lakh," NBR member Mohammad Jahid Hasan told TBS.
Seeking anonymity, an NBR official told TBS that by June next year, some new manpower will be created, like income tax practitioners, and secondary sources will be tapped. He hoped that the move would increase the number of taxpayers.
However, NBR's former commissioner Bazlul Kabir Bhuiyan believes that the expected number of returns have not been filed this time.
Explaining its reason, he told TBS that people's income is low due to a slowdown in the country's economy.
"A section of new TIN holders will file returns by next June, and when people will not get services without proof of return, the return submission will increase. That is to say, whatever this year brings, it will be significantly higher than next year," he added.
In addition, a lack of necessary monitoring and a lack of awareness or fear among taxpayers are the reasons behind their failure to file their tax returns.
Currently, annual income up to Tk3 lakh is exempt from tax. Anyone earning more than this is required to submit an income tax return every year.
Apart from this, it is mandatory to show proof of tax return submission for about 40 types of services. In the latest budget, NBR has taken a strict stance on this matter. In other words, a fine of up to Tk10 lakh has been imposed on the said service providers if they do not provide proof of this.
The law also requires businessmen to hang proof of their tax return submissions in their business establishments.
As per the existing Income Tax Ordinance, a penalty of 10% of the last tax payable or Tk5,000 – whichever is higher – is levied if a person fails to file a tax return or seek time from the revenue authorities.