NBR to frame policy to prevent misuse of income tax rebate
Revenue collection by the National Board of Revenue fell short by Tk 2,359 crore in the first seven months of the current financial year 2014-15, NBR chairman Md Nojibur Rahman said on Tuesday. At a regular news briefing at NBR headquarters in the capital, Nojibur said taxmen collected Tk 69,466 crore in July-January period of the financial year against the target of Tk 71,825 crore set for the period.
He, however, did not give any answer to the questions of reporters regarding impact of ongoing political unrest on the revenue collection, particularly in January when the political violence accelerated.
The tax administration is also going to formulate a comprehensive income tax rebate policy to prevent misuse of the facility, the NBR chairman said.
The revenue board will also honour 10 highest income taxpayers from each tax zone soon, he added.
‘Total revenue mobilisation in the period stood at close to the target for the months and we hopefully will be able to achieve the target by the end of the financial year on the back of various reforms activities and collective efforts though there are some challenges,’ Nojibur said.
Recognising the honest taxpayers both from individual and company categories and realising taxes involving pending cases that remain stuck in different courts will get priority along with establishing taxpayer-friendly environment in tax administration, he said.
The revenue board has already formed a legal solution group to coordinate legal matters with field offices which were asked to send the list of disputes involving more than Tk 1 crore to the board.
‘We will also hold meetings with the chief justice and the attorney general next week to request them to speed up the pending cases particularly analogous ones so that many cases can be settled automatically based on a verdict of a case,’ the NBR chief said.
NBR officials, however, said that value-added tax collection was severely affected in January due to political violence and vandalism which disrupted free movement of vehicles and people causing fall of domestic consumption and stagnation in business activities which are the main source of VAT.
Income tax collection also fell short of the target in the period, they said.
At a board meeting held on the day, the NBR made the decision of formulating an income tax rebate policy to prevent misuse of the tax benefit.
The board also decided to arrange consultation meetings with relevant government and non-governmental organisations seeking their opinion on the policy.
The government provides income tax rebate on income of different philanthropic organisations and donation of individuals to encourage working for welfare of mass people.
But there are allegations that many of profitable organisations get the tax benefit by providing wrong information and even misuse the benefit by breaching the conditions, officials said.
At the board meeting, the revenue board also decided to waive the war-wounded freedom fighters from paying advance income tax on registration and fitness renewal of cars.
The board made the decision to honour them and the decision will be finalised after getting approval from the finance ministry, NBR chairman said.
-With New Age input