Income tax bill to reduce tax evasion: president of the NBR

The current Income Tax Ordinance, for the most part, is a continuation of the Income Tax Act, 1922, which includes provisions almost 100 years old.

TBS Report

25 November 2021, 22:25

Last modification: November 25, 2021, 11:54 PM

Logo of the National Revenue Office (NBR)


Logo of the National Revenue Office (NBR)

A bill to be presented to the government will reduce tax evasion, the chairman of the National Board of Revenue (NBR) said on Thursday.

The “Income Tax Bill-2022″ which proposes to pay income tax refunds directly to taxpayers’ bank accounts through an automated system will also be easier to implement, Abu said. Hena Md Rahmatul Munim.

He made the remarks while chairing a seminar on law, organized by the NBR, at the auditorium of the BCS (tax) Academy in the capital.

The proposed law includes various measures such as abolishing the discretionary power of tax officers on the ground, which experts say will make it more business-friendly.

Many people file income tax evasion complaints under the pretext of difficult provisions and incomprehensible elements in “the old Income Tax Ordinance, 1984”, said the president of the NBR. The new bill will put an end to it, he hopes.

Meanwhile, speaking as the main guest of the seminar, Attorney General AM Amin Uddin recommended considering expert opinion before enacting the bill to make it more sophisticated.

“People are afraid and apprehended when they receive an income tax letter. The new law must be crafted in a way that eliminates this fear. So that people feel encouraged to pay taxes,” Amin said. .

The current Income Tax Ordinance, for the most part, is a continuation of the Income Tax Act, 1922, which includes provisions almost 100 years old, speakers at the seminar said. The socio-economic structure and trade of the country changed during this period.

Amin said the new law “is long overdue,” adding that there are opportunities to make many changes to the existing income tax law.

He also said that various attempts have been made to simplify the bill, which is being formulated in Bengali as part of a government initiative to formulate all laws in the country’s official language. Once enacted, international best practices will be incorporated into the 2022 tax law.

“The new law will remove the ambiguity. Tax collection will be easier.”

Speakers at the seminar said that the existing law does not include a specific line of action on the selection of audits and the conduct of audit activities.

The draft income tax law contains specific guidelines on these issues, which will ensure transparency in audits and create a favorable environment for businesses, they added.

In addition, the bill includes provisions relating to electronic tax management.

If one wishes to send money in the form of interest to a non-resident affiliated organization, they must follow specific rules.

In addition, provisions have been added to prevent internal transfer pricing and tax evasion. The rules for withholding and withholding at source have been clarified and more precise, which will remove any ambiguity in the withholding and withholding of residents and non-residents.

The rules for settling claims and collecting have been considerably simplified. Provisions relating to the approval of business expenditure have also been clarified.

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