NBR chairman reveals taxpayer brought Tk 7.30 billion under tax-free remittance facility

He questions why anyone will file a tax return when non-filers face no trouble, while filers face difficulties

A taxpayer has brought Tk 7.30 billion into Bangladesh, taking advantage of the legal tax-free remittance facility for expatriates, National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan has revealed.

When asked about the individual’s identity, he said: "Better not to mention the name. Actions must be taken first, and then you will automatically know the name."

He made these remarks on Monday afternoon at a discussion between BCS tax cadre officials and the Economic Reporters' Forum at the Revenue Building in Dhaka’s Agargaon.

The Bangladesh Civil Service (Taxation) Association organised the event.

Explaining why direct tax collection has increased but economic inequality has not decreased, the NBR chairman said: "We enacted a law to ensure that our expatriate brothers, who work hard abroad and send money to Bangladesh through banking channels, will have their income tax-free here.

"This initiative is meant to encourage expatriate workers to send their earnings to Bangladesh through formal channels, contributing to our foreign exchange reserves."

However, he pointed out tax evasion despite existing laws, saying: "You will be surprised to hear that a taxpayer has brought in Tk 7.30 billion, claiming it as wage earners’ remittance, which is tax-free.

"This explains why the Gini coefficient is moving in the wrong direction. Either we didn’t notice these issues, failed to understand them, or turned a blind eye. We have allowed this to happen, and this is our major problem."

When asked again about the taxpayer’s identity, he reiterated: "Better not to mention the name. Once actions are taken, you will know automatically. When the person comes into the limelight, you will recognise them."

Commenting on tax enforcement, he said, "Laws were enacted, but implementation was lacking. We currently have 11.3 million taxpayers. If you analyse, you will see the situation.

"Why would someone file a tax return if they can live peacefully without it? There are no hassles for those who don’t file returns, while those who do face complications. Think about it," he said.

He also said, "Out of 11.3 million Taxpayer Identification Number holders, only 4 million file tax returns, while around 8 million do not. If people can stay at peace without filing returns, then those who do file should be asked why they bother!"

"This means the enforcement work at the field level is not being carried out properly, leading to these problems and undesired consequences."

The NBR chairman also expressed hope that in the future, tax information would be automatically collected by integrating an Application Programming Interface (API) with banks.

Through this, details about taxpayers' deposits, the amount deducted at source, and other fundamental tax information would be automatically available when filing returns.

Economic Reporters' Forum (ERF) President Doulot Akter Mala urged the NBR to eliminate taxpayers' fear, improve coordination among government agencies, and regularly publish updated tax-related information online, including import and export data.