Tax evasion of Tk 3b uncovered in 3 months
The National Board of Revenue (NBR) has uncovered cases of tax evasion worth nearly Tk 3 billion in the first three months of the interim government. Besides, the government agency is also investigating all cases of tax evasion. At the same time, the reform process of Customs, Excise and VAT Office is also underway.
The NBR, on Thursday, reported to the cabinet on their activities in the last 90 days and the future plan. The NBR also sent a report to the cabinet division regarding the reform process of the revenue sector. Earlier, the cabinet division sought a report from the NBR on their activities over the last three months. Sources in the NBR confirmed this.
The incumbent interim government has taken up reform initiatives in various sectors. The reform activities were initiated in the revenue sector also. Three separate committees have been formed to review three laws on tax, VAT (value added tax) and income tax. The NBR has informed the Cabinet Division about the progress in their report.
Speaking to Prothom Alo, South Asian Network on Economic Modeling (SANEM) executive director Selim Raihan said, “Reform of the revenue sector has become mandatory. Revenue collections from internal sectors must increase. It will reduce the tendency of taking loans, which will ease the pressure on the economy. We have to make an arrangement where people can pay taxes easily without any hassle.”
Tax evasions worth Tk 2.86 billion
According to the NBR report, the NBR has uncovered cases of tax evasion worth Tk 2.86 billion in the last three months. The VAT department has found the maximum information of tax evasion. The NBR has information of VAT evasion of Tk 1.67 billion in this sector. A total of 103 cases have been filed over these incidents. Some Tk 680 million has been collected against these cases over the last three months.
Meanwhile the customs department has found evidence of evading duties worth Tk 390 million. Some 57 cases have been filed over these cases of duty evasion. Around Tk 60 million has been collected so far from these cases.
Meanwhile, the Central Intelligence Cell (CIC) has collected a total of Tk 740 million in the last three months. However, the report didn’t disclose the identities of the people accused of tax evasion.
NBR launched investigations into the allegations of tax evasion against six top businesspersons in the country and their companies following the fall of the Awami League government on 5 August.
Those six top businesspersons are – BEXIMCO Group chairman Salman F Rahman, Nasa Group chairman Nazrul Islam Mazumdar, Summit Group chairman Muhammad Aziz Khan, Bashundhara Group Chairman Akbar Sobhan, Orion Group chairman Obaidul Karim and S Alam group chairman Saiful Alam.
They all were known as very close to former prime minister Sheikh Hasina. Apart from that, investigations are underway against several other business conglomerates and former bureaucrats.
Besides, the NBR cancelled the provision of legalising black money within just two months of opening the offer to encourage the honest taxpayers, which is unprecedented in the history of the country.
Reduction of duties and taxes on five essentials
High inflation is a key challenge for the current government. In response, import duty, VAT, regulatory duty, and advance income tax have been reduced at the import and supply level for essential commodities, including rice, sugar, eggs, and edible oil to help stabilise market prices.
The NBR report also mentioned that goods valued at nearly Tk 80 billion were held in various customs stations for an extended period. Measures have been taken to expedite their release, resulting in the collection of customs taxes amounting to Tk 1.6 billion.
Besides, around 35 kg of gold has been seized over the past three months, along with large amounts of foreign currency, mobile phones, cigarettes, and drugs. Bandrolls and stamps worth Tk 1.53 billion have also been confiscated.
Strengthening online system
On 9 September, the NBR launched an online system for filing annual income tax returns. Since then, over 200,000 taxpayers have submitted their returns online. Besides, a database has been created to facilitate quick disposal of approximately 30,000 NBR-related cases in the Supreme Court. Around Tk 30 billion has been stuck due to these cases.
According to the NBR report, an initiative has been taken to increase the rate of online VAT return submissions from 85 per cent to 100 per cent. Also, it has set a target to implement an online national single window (NSW) system for the customs department by March next year.
An NBR official, on condition of anonymity, said alongside efforts to restore order at the field level, initiatives have been taken to reform the revenue collection system and regulations. In cases of proven corruption or irregularities, punitive action has been taken against the concerned taxpayers and tax officials.
These measures have begun to gear up the revenue administration, he added.