UNB, Dhaka :
The National Board of Revenue (NBR) has decided to prepare circle-wise lists of taxpayers, aiming to boost revenue earnings from advance income tax (AIT).
“This list will help the NBR to monitor and collect income tax timely,” a senior NBR official told UNB.
Currently, there are 31 income tax zones across the country with 649 circles. The NBR official said the Board has directed its field offices across the country to prepare the lists and monitor that properly under their jurisdiction. He said the collection of advance income is relatively an easier process for the NBR. “A big portion of revenue comes from this section in the developed countries. Taking into account, all the matters the NBR has decided to prepare a list as part of its plan to enhance the revenue earnings,” he said.
Currently, the contribution of AIT to the total income tax collection is around 53 percent in the country, which is much lower compared to that of the developed nations. In developed countries like the USA and European ones, the contributions of withholding tax or AIT to total income tax collection is around 90 percent.
Some private and government companies and organisations deduct and collect AIT from 53 sectors like salaries, supply of goods, bank interest, fees of doctors and professionals at different rates ranging from 1 to 15 percent as specified in the Income Tax Ordinance-1984. AIT is creditable during final assessment of tax. The NBR has to refund the additional amount paid by the taxpayers if the total tax is less than AIT.
Contacted, a tax commissioner told UNB that big taxpayers, including corporate houses and
financial institutions, usually pay their advance income tax willingly. “We don’t have to do anything for them, they just deposited their advance income tax on regular basis.”
But, he said, some taxpayers whose tax does not stand for a big mount shows negligence in depositing their advance income tax willingly. “Often they forget to pay, we’ll have to send them letters to remind them about their advance income tax payment,” he said. The commissioner also said the taxpayers pay their advance income tax divided equally in four quarters.
The NBR has got a gigantic target of Tk 176,370 crore revenue collection for the 2015-16 fiscal against Tk 135,028 last year. This year, the target was set at Tk 64,971 crore from income tax, while Tk 64,262 crore from VAT and Tk 18,752 from import duty. The target for export duty has been fixed at Tk 37 crore, excise duty at Tk 1,239 crore and supplementary duty at Tk 25,875.
The National Board of Revenue (NBR) has decided to prepare circle-wise lists of taxpayers, aiming to boost revenue earnings from advance income tax (AIT).
“This list will help the NBR to monitor and collect income tax timely,” a senior NBR official told UNB.
Currently, there are 31 income tax zones across the country with 649 circles. The NBR official said the Board has directed its field offices across the country to prepare the lists and monitor that properly under their jurisdiction. He said the collection of advance income is relatively an easier process for the NBR. “A big portion of revenue comes from this section in the developed countries. Taking into account, all the matters the NBR has decided to prepare a list as part of its plan to enhance the revenue earnings,” he said.
Currently, the contribution of AIT to the total income tax collection is around 53 percent in the country, which is much lower compared to that of the developed nations. In developed countries like the USA and European ones, the contributions of withholding tax or AIT to total income tax collection is around 90 percent.
Some private and government companies and organisations deduct and collect AIT from 53 sectors like salaries, supply of goods, bank interest, fees of doctors and professionals at different rates ranging from 1 to 15 percent as specified in the Income Tax Ordinance-1984. AIT is creditable during final assessment of tax. The NBR has to refund the additional amount paid by the taxpayers if the total tax is less than AIT.
Contacted, a tax commissioner told UNB that big taxpayers, including corporate houses and
financial institutions, usually pay their advance income tax willingly. “We don’t have to do anything for them, they just deposited their advance income tax on regular basis.”
But, he said, some taxpayers whose tax does not stand for a big mount shows negligence in depositing their advance income tax willingly. “Often they forget to pay, we’ll have to send them letters to remind them about their advance income tax payment,” he said. The commissioner also said the taxpayers pay their advance income tax divided equally in four quarters.
The NBR has got a gigantic target of Tk 176,370 crore revenue collection for the 2015-16 fiscal against Tk 135,028 last year. This year, the target was set at Tk 64,971 crore from income tax, while Tk 64,262 crore from VAT and Tk 18,752 from import duty. The target for export duty has been fixed at Tk 37 crore, excise duty at Tk 1,239 crore and supplementary duty at Tk 25,875.
