To encourage sending remittances through legal channels, the National Board of Revenue (NBR) offers tax exemptions. Additionally, the government provides cash incentives. Taking advantage of these facilities, a businessman has brought Tk 730 crore into the country, NBR Chairman Md. Abdur Rahman Khan has revealed.
He shared this information during a discussion between the Economic Reporters Forum (ERF) and BCS Tax Cadres at the Revenue Building in Agargaon, Dhaka, today (Monday). However, he did not disclose the name, identity, or exact timing of the incident. Abdur Rahman Khan mentioned that this large inflow of money under the guise of remittances has raised suspicions among tax officials. When asked about the individual’s identity, the NBR Chairman responded, “It’s better not to mention the name. Action will be taken, and once that happens, you will know the name anyway.” The discussion was organized by the Bangladesh Civil Service (Taxation) Association. The event was presided over by the association’s president, Mutasim Billah Farooqui, while the general secretary, Syed Mohidul Hasan, delivered the welcome speech. Currently, remittances sent through legal channels are tax-free. Additionally, the government provides a 2.5% cash incentive on remittances. However, the NBR Chairman indicated that this businessman exploited these facilities in an irregular manner. In response to a question about why economic inequality is increasing despite the rise in direct taxes, Abdur Rahman Khan explained that hard-working expatriates who send money home through official banking channels deserve tax exemptions. A law was enacted to encourage them. However, some people evade taxes by misusing this provision. The NBR Chairman stated, “You will be surprised to know that a taxpayer has brought Tk 730 crore, claiming it as wage earners’ remittance, which is tax-free. This is precisely why income inequality is rising instead of declining.”
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He further said, “Either we failed to notice it, didn’t understand it, or deliberately ignored it. We are providing loopholes, and that is our biggest issue.” Regarding online income tax returns (e-returns), he acknowledged that while laws exist, they have not been effectively implemented. Out of 1.13 crore Taxpayer Identification Number (TIN) holders, only 40 lakh individuals submit tax returns. The remaining 80 lakh+ do not. In the future, tax data will be collected automatically through an API (Application Programming Interface) with banks, providing information on taxpayers’ deposits, deducted source taxes, and other relevant details at the time of filing returns. During the discussion, ERF President Daulat Akhtar Mala suggested eliminating fear among taxpayers. She also urged for better coordination among government agencies and for regular online publication of updated tax-related information, including import-export data.
Source: Prothom Alo
