The laundering of money through over- and under-invoicing was the result of a collective failure of the banks and the National Board of Revenue, said NBR chairman Abdur Rahman Khan at a programme on Saturday.
鈥業n today鈥檚 world, global product prices were transparent, and the banks and customs authorities must verify declared values at the time of opening letters of credit,鈥� he said while speaking at a debate programme titled 鈥榓chieving expected revenue collection is possible through reforms in tax management鈥�.
Debate for Democracy organised the programme at the Bangladesh Film Development Corporation in Dhaka.
鈥楾he issue of under-invoicing and over-invoicing in global trade is a collective failure,鈥� he added, saying that failure to import or export at actual prices harmed compliant businesses and genuine taxpayers.
He also said that to prevent under-invoicing, NBR set a minimum tariff value.
Regarding the revenue reform, the NBR chairman said that creating separate wings for policy and management would not, by itself, increase revenue collection.
鈥楢long with political will, proper governance in tax administration is also important. Moreover, corruption is a major barrier to an effective tax system,鈥� he stated.
He mentioned that establishing accountability and good governance would be the key factor in preventing corruption in tax administration. 鈥榃ith the full independence from government policymakers, including the chief adviser, it is possible to take bold decisions.鈥�
Regarding tax exemptions, he said, 鈥楾ax collection is often overshadowed by widespread exemptions.鈥�
鈥榃e decided to reform the tax laws by which the government would no longer be able to arbitrarily grant tax exemptions,鈥� he added, saying that only parliament, through the finance bill, would be able to approve tax exemptions based on national interest.
He also emphasised the importance of utilising technology to ensure transparency in revenue collection and noted that they had recently digitally selected 15,400 files for audit using a random method.
鈥楴BR is now placing emphasis on automation. Over 5 lakh applicants have received services in under an hour through online applications via the Bangladesh National Single Window,鈥� he mentioned.
He also said that 17.12 lakh TIN holders submitted returns online in the past year, and this year, they made the online return submission mandatory.聽
Hasan Ahmed Chowdhury Kiran, chairman of Debate for Democracy, said that the protest against the proposed splitting of the NBR had been withdrawn by concerned officials.
鈥業 believe the government would consider the valid demands from revenue officers,鈥� he added.
He also stated that the revenue officers feared the reform could increase the dominance of the administrative cadre and limit their career progression opportunities.
鈥業f the restructuring disadvantages revenue officers in terms of promotions and authority, it could create inequity. To avoid this, authority should present a clear organogram,鈥� he noted, saying that excessive punitive actions and administrative pressure in the name of reform could demoralise officials.
The organisation also recommended that the NBR automate tax administration, communicate proposed reforms, ensure career progression for revenue officials, end the opportunity for tax exemptions on a case-by-case basis, and take action to prevent under-invoicing to expand the tax net.聽
In the parliamentary-style debate, Green University of Bangladesh emerged victorious, defeating the team from Chattogram Maa-O-Shishu Hospital Medical College.
Academicians, journalists and other experts were also present at the event.