Foreign investment unlikely, focus on revenue collection: finance advisor tells NBR

The finance advisor advises NBR officials not to instil fear among taxpayers and to ensure fairness in dealing with them

Finance and Commerce Advisor Salehuddin Ahmed has urged tax officials at the National Board of Revenue, or NBR, to intensify efforts in boosting revenue collection, warning that foreign investment may not come in significant amounts.

“Foreign investment will not be readily available. We need to rely on domestic revenue sources,” he said during a discussion on amendments in direct taxation under the Finance Act 2024, held at NBR's multipurpose hall in Dhaka’s Agargaon on Saturday.

He emphasised reducing delays in revenue collection, saying: “You cannot evade direct taxes, but indirect taxes are a different matter. Collect revenue without causing unnecessary distress.”

Highlighting the current financial needs of the government, Salehuddin called for reducing wasteful public expenditure. “The government needs funds at this moment, and public money must not be wasted,” he added.

The finance advisor also urged tax officials to focus on raising funds from internal sources rather than relying on foreign loans. He advised them not to instil fear among taxpayers and to ensure fairness in dealing with them.

NBR Chairman Abdur Rahman Khan, speaking at the event, declared that the institution's laws would be made more business-friendly.

“I urge everyone to file their tax returns online. The burden of public debt is increasing while NBR is struggling to meet its revenue targets. This situation needs to change,” he said.

Khan also addressed concerns about the misuse of tax revenues, saying that the perception of public money being wasted must be corrected.

Bangladesh Civil Service (Taxation) Association President Md Lutful Azeem, who chaired the discussion, stressed the need for reforms in direct taxation under the interim government's broader reform programme.

“Direct tax reforms are essential. We need automation, and no officer should oppose this. There's no alternative to automation.”

He also stressed the importance of improved training for tax officials, saying that an investment of Tk 10 billion in automation could result in Tk 50 billion in revenue collection.

Salehuddin highlighted the interim government's growing concern over dependency on external aid.

He said, “There’s a saying that if your hand is in my pocket, you’ll follow my direction. We are feeling this acutely.”

He continued, “While we strive to take initiative independently, we often find ourselves constrained by donor directives. We aim to minimise reliance on external sources.”