Dhaka: Finance Minister Amir Khosru Mahmud Chowdhury announced that the government is taking measures to simplify the tax system and enhance transparency to alleviate taxpayers' apprehensions regarding tax assessments.
According to Bangladesh Sangbad Sangstha, Khosru addressed a supplementary question from opposition lawmaker Md. Abdul Alim in the House, acknowledging the prevalent fear among citizens that filing a tax return, especially a revised one, could trigger an audit and potential harassment. He noted that this fear discourages individuals from entering the tax net.
Khosru explained that the government is implementing several initiatives to simplify the tax system, encouraging voluntary tax compliance. He highlighted that the fear of audits is just one of the many barriers faced by taxpayers.
The minister detailed the government's plan to bifurcate the National Board of Revenue (NBR) to separate tax policy formulation from administration and implementation. This separation aims to reduce opportunities for corruption and undue influence within the tax administration.
Khosru emphasized the importance of establishing transparency in tax administration, allowing taxpayers to fulfill their obligations without fear or unnecessary complications. He expressed concern over Bangladesh's low tax-to-GDP ratio and attributed it to inconsistent efforts in the past.
The minister reiterated the government's commitment to simplifying the tax system, which he believes will encourage more people to participate in the tax net. Efforts are underway to address audit-related concerns and other issues that deter taxpayers from complying with tax requirements.
Khosru concluded by expressing optimism about the positive outcomes of these reforms, assuring that results will be visible soon.