Editorial
Upbeat on revenue collection
NBR success laudable but vast potential still untapped
The National Board of Revenue has reasons to revel in substantial growth in tax revenue but no cause to celebrate. Not as yet, because less than one-third of the total tax payer base of two million submitted their tax returns. And taking into account the fact that there may be several millions without TIN number whose incomes are taxable and yet who have not filed their returns, the extent of tax evasion makes us sit up and take note.
Let's give the credit where it is due. NBR has received Tk 7.39 billion from individual tax payers in 2007-08 assessment year, up by Tk 4.87 billion from the level of previous year. Quite a big leap in collection. There has been a 20 percent increase in the number of tax payers: from 5,35,994 a year ago to 6,45,617 in 2007-08.
What has made the difference this year? NBR chairman Muhammad Abdul Mazid put it down to awareness building and tax-payer-friendly environment to encourage payment coupled with introduction of universal self-assessment method easing thereby the procedure for filing tax return. That the NBR formed a three member committee to analyse and clarify all Statutory Regulatory Orders (SROs) on a designated website proved useful reminders to all concerned for compliance.
Nevertheless, we believe there is room for plenty of improvement in the tax-payer-friendly atmosphere and simplification of forms and procedures of filling these out.
The NBR chairman is reportedly keen on probing the reasons why there has been less-than-expected submission of returns, particularly in view of the vigorous awareness campaigns and the on-going anti-corruption drive. To our mind, after all that has happened by way of increasing public antipathy to corruption and vulgar acquisition of wealth the potential tax base of millions more could be tapped if the tax collection system is primarily based on voluntary compliance.
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