Today (19 March) National Board of Revenue Chairman Md. Abdur Rahman Khan stated that reducing tax evasion and enhancing governance in tax compliance will increase government revenue income but not tax increases. He stated during a pre-budget discussion in the Revenue Building’s conference room is that “Not by raising the tax rate this is our thumb rule.” He declared that the next national budget for FY25–26 will not result in an increase in the tax burden. The NBR is making an effort to downplay it instead.
The head of the NBR stated that balancing tax collection with facilitating trade and business is a difficult undertaking. “The cost of non-compliance is very high,” he warned, urging everyone to maintain strict tax compliance. “You will be in great problem if you are not maintaining the tax compliance properly,” he stated. Regarding the use of counterfeit band roll by a section of bidi makers, Khan claimed that bogus band roll worth about Tk 300 crore has recently been found in Manikganj. “The tax on bidi is rather modest, so why are you doing this? It is 56% whereas the cigarette rate is 82%. “Revenue evasion will cost you dearly,” he cautioned.
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In this regard, the chairman of the NBR stated that if the owners of the Bidi factories did not curb their propensity for tax fraud. The agency would have no choice but to implement stricter legislation. “You will find it difficult to carry on with your business. Please remember that we will take severe action in the future if we discover even one instance of a false band roll. We will pass new legislation if needed,” he declared. The NBR chairman urged the customs agents to exercise greater caution when it came to imposing higher taxes on imported products even though the materials were really imported at reduced prices.
He stated, “Over invoicing is dangerous than under-invoicing, because through under-invoicing you might get lower duties, but by the over-invoicing foreign exchange drains out from the country alarmingly, and it helps to smuggle out money.” Additionally, he requested that the VAT officials get ready to collect VAT in a more comprehensive manner rather than by enforcing an additional tax. Khan lamented the nation’s extremely bad income tax and VAT situation. He further said that “We are not even close to the amount we are supposed to get from income tax and VAT.” He reassures that the NBR is prepared to reduce the VAT rate if businesspeople agree on a single rate.
