Banking sector dominates highest taxpayers’ list

Highlights

• 443 companies, 728 individuals listed by LTU
• LTU honours 30 cos as top taxpayers in FY21
  
  • 13 banks
  • 10 manufacturing companies
  • 3 service and other companies
  • 2 NBFIs
  • 2 insurance companies
• Banking sector pays the most taxes to NBR
• Grameenphone listed as the highest taxpayer
• 3 entities honoured for top tax deduction at source

The Large Taxpayers Unit (LTU) – under the National Board of Revenue – has honoured 30 companies for paying the highest amount of taxes in Fiscal Year 2020-21. It also honoured three other entities for deducting the highest amount of tax at source, including the central bank.

This list of highest taxpayers honoured by the LTU clearly indicates that the banking sector is dominating, as 13 of these 30 companies are private banks. The manufacturing sector follows closely, with 10 companies making into the list.

Besides, three companies from the service and other sectors, two non-bank financial institutions (NBFIs) and two insurance companies received this honour, given at an event in Dhaka on Tuesday – where Bangladesh Bank's Governor Fazle Kabir attended as the chief guest.

In the FY2020-21, the LTU collected around Tk24,071 crore in taxes from the largest tax-paying companies, which is 15% more when compared to the previous year. The NBR has conveyed special thanks to stakeholders for the relatively good tax collection despite the Covid-19 crisis.

The LTU however did not disclose the amount of taxes these companies paid last year, or their rankings in the list. Its Commissioner Iqbal Hossain told The Business Standard that the largest taxpayer company is Grameenphone, but banks collectively pay the highest amount of taxes.

It began its journey in 2003, formed to collect taxes from the largest taxpayers in Bangladesh. No formal criteria for a large taxpayer currently exists in the country, but all banks, insurance agencies, NBFIs and mobile operators are currently listed by the LTU.

The unit currently has 443 companies and 728 individuals recorded as large taxpayers. Iqbal however said some organisations – located in tax zones outside the LTU's coverage – have paid more taxes compared to some of the companies listed by this unit.

NBR's Chairman Abu Hena Md Rahmatul Muneem said, "Prime Minister Sheikh Hasina speaks about building a nation that upholds self-respect. Our courage and our money paid for the Padma Bridge. The money came from the taxpayers.

"We will go even further if we target the growing domestic market. Our consumer market is witnessing a boom, and we have plans to boost industrialisation to support this upward trend."

He added that more transparency [in the taxation process] will help [the NBR] ensure lower tax rates and a more taxpayer-friendly atmosphere.

Echoing the same, NBR Member Md Alamgir Hossain said, "We must focus on creating a taxpayer-friendly atmosphere and automation in tax management. We have already witnessed that easing up the taxing process increases the amount of taxes collected."

Grameenphone's CEO Yasir Azman said, "The last year was very difficult for us, but during that time, we managed to resolve some long standing issues with the NBR through discussions. This has encouraged us to pay taxes.

"People are depending more and more on digital services. As newer digital services begin their journeys, the opportunity to collect more taxes is increasing too. The authorities concerned should create tax and VAT structures for such sectors."

NBR Member Mohammad Golam Nobi and Islami Bank Bangladesh Ltd's Managing Director and CEO Monirul Mowla also spoke at the event among others.

Entities honoured by the LTU

Among the companies honoured by the LTU, Islami Bank Bangladesh Ltd, Standard Chartered Bank Bangladesh, HSBC, Dutch-Bangla Bank, United Commercial Bank, National Bank, Eastern Bank, Al-Arafah Islami Bank, Export Import Bank of Bangladesh Ltd, Trust Bank, Premier Bank, Brac Bank and Prime Bank are from the banking sector.

British American Tobacco Bangladesh, Square Pharmaceuticals, Sheikh Akij Uddin Limited, Uttara Motors, Uttara Automobiles, Perfect Tobacco Company, Nestle Bangladesh, Healthcare Pharmaceuticals, Beximco Pharmaceuticals, and Olympic Industries are from the manufacturing sector.

Grameenphone, Chevron Bangladesh Block 13-14, and MJL Bangladesh are from the service and other sectors.

IDLC Finance and Infrastructure Development Company Limited (IDCOL) are from the NBFI sector, while American Life Insurance Company and the Sadharan Bima Corporation are from the insurance sector.

Besides, the unit honoured the Bangladesh bank, Grameenphone and Titas Gas Transmission and Distribution Company as the Tax Deduction at Source (TDS) authorities.