31 lakh taxpayers don’t pay income tax

Out of 57 lakh taxpayers registered in the outgoing fiscal year 2020-21, 31 lakh 79 thousand 355 taxpayers did not file income tax returns. As a percentage which is 56.60 percent.

However, the number of returns filed by individual taxpayers is increasing every year. In the fiscal year 2020-21, a total of 24 lakh 30 thousand 845 taxpayers filed income tax returns in the country. Which is about 15 percent more than the previous financial year. According to the NBR, the number of returnees in the 2019-20 financial year was 21 lakh 14 thousand 365 people.

The NBR is taking steps to find out why a large number of taxpayers did not file their income tax returns in the last financial year, despite the law's obligation to file returns. As an initial step, the Income Tax Department of the NBR is reportedly deciding to issue show cause notices to persons with Tax Identification Numbers (TINs) from all tax regions of the country.

A senior NBR official, who did not want to be named, told Dhaka Post that as per the rules, a taxpayer has a legal obligation to file a return on time every year. Returns have to be submitted by November 30 of each year. The NBR has been conducting various promotional programs including income tax fair in November every year to make the taxpayers aware about it. However, the income tax fair was not held last year due to the Corona epidemic. The fair may not be held this year either. However, tax services continue throughout the year in the tax zones with special arrangements including online services. Even then, the filing of income tax returns has not increased to the desired level. That is why the NBR is considering taking legal action by identifying the people who have not submitted their returns and giving them notices. He also said that the process of submitting online returns is being made easier in the future.

The official added that in the first phase, the NBR would aim to cover those who have taken TIN as traders but are not filing regular returns. Usually most employees file returns. Because filing an income tax return has an official relationship with their salary. In addition, initiatives have been taken to make income tax returns mandatory for motor vehicles and vessels, all types of trade licenses and registration or renewal of contractors. However, due to the Corona epidemic, such activities may be somewhat hampered. Even then the NBR will do as much as possible with limited manpower. Because the tax coverage needs to be increased.

NBR member (income tax policy) said. Alamgir Hossain told Dhaka Post that he had gone through the Corona epidemic for the entire last financial year. Even then our tax offices have been kept open to continue all kinds of tax related services. That is why the number of our return submissions and revenue collection has increased. Probably not increased to the desired level. The law provides for those who have not filed their returns even after taking TIN. The NBR will take action as per the law.

Earlier, NBR chairman Abu Hena said. Rahmatul Munim has said in various meetings on revenue that there is no complication in submitting returns. And there is no reason to be afraid of submitting returns. Everyone has to submit income tax return.

On the other hand, the former caretaker government's financial adviser economist. AB Mirza Azizul Islam told Dhaka Post that in this situation of Corona epidemic, the NBR and the government should first of all pay special attention to stop tax evasion to increase revenue. And I think the NBR should take steps to increase the tax coverage and force all TIN holders to file income tax returns. Then the revenue will increase further.

What happens if I do not submit the return?

If a taxpayer fails to file an income tax return within the time prescribed under Section 65 of the Income Tax Ordinance, he will be liable to a penalty under Section 124 of the Income Tax Ordinance, 50 per cent additional simple interest as per Section 63 and late interest as per Section 63 (a).

Again the taxpayer can submit the return within the time fixed by the Deputy Commissioner of Taxes by requesting the time for filing the return. In that case no penalty will be imposed on the taxpayer. However, additional simple interest and late interest will be charged.

On the other hand, if a person does not file a return for several years in a row, he may be fined Tk 50 per day for the entire period of time as long as he does not file a return. However, no matter how long it takes, if the new taxpayer, the total amount of fine will not be more than five thousand rupees. And if you are an old taxpayer, you will have to pay up to 50 percent of the amount of income tax that was incurred in the previous year.

Meanwhile, in the outgoing 2020-21 financial year (June-July), a record 19 per cent growth has been made in the collection of duties, value added tax (VAT) and income tax, about Tk 2,59,900 crore. Of this, the collection of the company in the areas of income tax, VAT and customs is 65 thousand 391 crore, 98 thousand 509 crore and about 6 thousand crore rupees respectively. Although the growth was satisfactory, the company had to face a deficit of Rs 41,000 crore in revenue collection due to the adverse environment created by the Corona outbreak.