BNR launches automated withholding tax system
The National Board of Revenue (NBR) today launched an automated system to allow public and private organizations to deduct and file tax at source without having to do the work manually.
The withholding tax or the withholding tax represents 60 percent of the total income tax collection and the BNR collects the withholding tax from 53 heads, for example the income tax. interest of depositors, withholding tax on export earnings of exporters.
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And nearly 3 lakh public and private agencies are responsible for deducting taxes from these sources of income and depositing the money in the state coffers.
As the task of deduction and control takes time for deducting authorities, the BNR said the automated system would make the process easier.
Due to the automation of the withholding tax collection system, the scope of tax evasion will be reduced, the BNR said during the launch of the electronic withholding tax system (eTDS), developed by a team of 21 BNR members.
At the event, Bangladesh Comptroller and Auditor General Mohammad Muslim Chowdhury expected automation to increase TDS collection to 85% of total income tax, from 60% currently over the next two years.
The NBR collected Tk 85,224 crore of income tax in the fiscal year 2020-2021 and TDS contributed 60% of the total.
The reimbursement process must also be made automatic and transparent, he told the
inauguration of the system at NBR headquarters in Dhaka.
The Principal Secretary of the Finance Division, Abdur Rouf Talukder, and the President of the NBR, Abu Hena Md Rahmatul Muneem, and senior officials of the tax administration were present.