Good news for taxpayers – no extra docs needed for online filings

Good news for taxpayers – they will no longer be required to upload additional supporting documents when filing their tax returns online, known as e-returns.

The National Board of Revenue (NBR) has taken the initiative to streamline the process and encourage more taxpayers to use the online system.

"We have already announced that no extra documents are needed with e-returns. The tax authority will consider the information provided by taxpayers as accurate," said NBR Chairman Abdur Rahman Khan during a press briefing at its headquarters in the capital today (23 October).

"However, if any discrepancies are found after submission, the taxpayer will be held responsible," he added at the briefing organised to share updates on the recent developments in the e-return filing system.

Currently, for manual tax returns, taxpayers are required to submit various supporting documents, such as proof of income, bank balances, loans, and house property details. But to promote the online tax return filing system, the NBR has waived the requirement for these documents in the e-return process. 

The NBR has been working on the online tax return system for over five years, but it has yet to gain widespread popularity among taxpayers. In the fiscal 2023-24, around 44 lakh tax returns were filed, of which only five lakh were submitted through the online system. 

The revenue board is hopeful that over 15 lakh tax returns will be filed online this year. To achieve this, online tax return filing has been made mandatory for all government employees in the four city corporations, including Dhaka, as well as for all bank officials across the country and certain private sector employees. 

Taxpayers have raised concerns that the system is not user-friendly and has several issues, including restricted access. In response to these concerns, the NBR chairman said, "The system has now been made more user-friendly, and taxpayers can easily file their returns from home." 

He said, "The effort for processing a tax file of Tk20,000 is the same as for one of Tk2 crore. So, why should they charge a percentage-based fee on the amount of tax?" 

Khan also mentioned that they plan to reduce the need for taxpayers to visit tax offices by sending tax personnel to the premises of taxpayers. 

"We are planning to engage university students, who will assist us by visiting taxpayers' premises to provide the necessary help in preparing their tax returns," he added.

National issues causing revenue hiccup 

The student-led uprising that led to the fall of Sheikh Hasina's government in early August has created significant challenges for the NBR. It believes this situation impacts revenue collection and poses difficulties in achieving the target for FY25. 

"Usually, we set ambitious revenue targets. To say that we will definitely meet the target would be an exaggeration," said the NBR chairman. 

"Due to national issues, there has been a disruption in revenue mobilisation. Still, we are putting in our best efforts. If we can give our maximum, we may achieve the best possible result in collecting revenue," he added.

NBR's efforts to recover lost revenue

In response to a question, the NBR chairman explained that the agency is actively working to recover lost or forgone revenue for the government. 

"You may not be aware, but the NBR is closely collaborating with other government bodies, particularly law enforcement and intelligence agencies. As we progress with the collection process, details of this work may come to light," he added.