The chairman of National Board of Revenue, Md Abdur Rahman, said that widespread use of tax exemptions is preventing the country from increasing its tax-to-GDP ratio.
Speaking as the chief guest at a seminar titled 鈥楥orporate Tax and VAT Reform: A Critical Perspective for the NBR,鈥� he warned that the failure to collect sufficient taxes could affect development and spending of the government in different sectors.
The programme was organised by think tank Centre for Policy Dialogue (CPD) at a hotel in the capital.
Regarding the minimum tax system, the NBR chairman said, 鈥楾here is no doubt that minimum tax is an old law, we have to admit it.
Business will be taxed on profits. Instead, we are fixing minimum tax. The problem is, if we try to fix these, our tax collection will decrease.鈥�
The main paper was presented by CPD senior researcher Md Tamim Ahmed. The organisation鈥檚 research director Khandaker Golam Moazzem moderated the event.
The NBR chairman said, 鈥榃e have started a new project with the support of the World Bank. We want an automated NBR. If we can digitise everything, then tax and VAT returns will be done at the touch of a button. Currently, there are questions about the quality of audit reports. We have stopped manual selection. From now on, audits will be done on a risk basis.鈥�
He also said that if the tax net can be increased, it is possible to reduce tax and VAT rates. A single rate VAT should be implemented and the refund should automatically go to the taxpayer鈥檚 account.
