The Institute of Chartered Accountants of Bangladesh (ICAB) has recommended the digitalisation in tax administration and structural reforms in the NBR.
"There should be two revenue sources - the Direct Taxes Board and the Indirect Taxes Board. Tax officers should receive logistic support to enhance taxpayer numbers," ICAB President Mohammed Forkan Uddin said during a pre-budget discussion at ICAB Council Hall in Karwan Bazar on Sunday.
Mentioning that the revised revenue collection target for the current fiscal year stands at Tk4.10 lakh crore, he said, "With only four months left, over Tk1.83 lakh crore must be collected to meet this revised goal, which poses a significant challenge. Currently, income tax contributes only a small fraction to NBR's revenue collection. It is imperative to reverse this trend."
The ICAB president further said, "There should be integration between the NBR and other departments. As of the end of 2023, tax revenue accounted for only 7.8% of our GDP, which is quite low. Increasing tax revenue poses challenges, and the government must address the irregularities affecting tax collection."
He also mentioned that ICAB has introduced the Document Verification System (DVS), which helps prevent tax evasion and contributes to increasing government revenue.
The ICAB has submitted this year's budget proposal to the NBR, Forkan Uddin said, adding the proposal underwent a rigorous review process, incorporating recommendations from esteemed ICAB members.
"Emphasising revenue growth, consistency in laws, and curbing tax evasion, the ICAB proposal underscores transparency in law enforcement and incentives for investment activities," he said.
