National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan reassured businesses on Wednesday that the new direct bank linkage for online tax returns will not pose any risks to taxpayers. Speaking at the “Meet the Business” seminar at NBR’s headquarters, he emphasized that bank details will remain confidential and inaccessible to NBR officials.
“This facility benefits taxpayers,” Md Abdur Rahman Khan said. “There will be no impact on bank deposits or taxpayer privacy. The purpose is to eliminate the need for taxpayers to repeatedly provide account details.”
On corporate tax, Md Abdur Rahman Khan revealed that the corporate tax rate has been reduced to 20 percent, with plans to move corporate tax returns to an online platform. “We want businesses to invest without unnecessary hurdles,” he added.
Addressing the issue of non-filers, the NBR Chairman pointed out that many taxpayers fail to file returns and that issuing notices to those with Taxpayer Identification Numbers (TINs) should not be viewed as harassment. He reiterated that filing returns is the solution and highlighted the ongoing automation of income tax filings.
“We will conduct random audits, especially for companies, ensuring that at least one new file is generated for every three audits,” Md Abdur Rahman Khan explained.
Regarding VAT rates, Md Abdur Rahman Khan acknowledged concerns but said that if necessary, VAT rates could be reduced. He stressed the need for a single VAT rate, aligning with the government’s digitalization goals. “Consumers pay VAT, so why hide it?” he questioned.
On the tobacco sector, he pointed out that despite an 83 percent VAT rate, significant evasion continues. “In the past year, 3,000 audits revealed major VAT evasion in the tobacco industry, with most collected VAT not reaching government coffers,” he said. To address this, Md Abdur Rahman Khan announced plans for a QR code-based system to automate VAT collection, urging businesses to embrace automation.
Earlier, on August 14, NBR sent a letter to Bangladesh Bank and the Ministry of Finance, proposing a direct link between online tax returns and banks. This system would allow real-time access to account balances, interest income, and tax deducted at source, raising concerns about potential privacy issues and the impact on bank deposits.
