The National Board of Revenue (NBR) has taken initiative to introduce new identification numbers for specific tax payers to plug loopholes in tax payments. The new identification numbers will be given to those tax payers who are currently holding both Tax Identification Numbers (TINs) and Business Identification Numbers (BINs). The move will greatly reduce revenue leakage, said a high official of the NBR. The NBR became certain after conducting various studies that the TIN holders evaded huge income tax by concealing information on value added tax (VAT) payment with respect to import and production. "These dishonest tax payers do pay due amount of VAT but evade income tax payment by giving misleading information on VAT payment," the official said. In absence of coordination between Income Tax and VAT departments and joint audit system the taxmen find themselves in helpless condition to check such tax dodgers whose number are increasing day by day. The official hoped that the NBR with the help of uniform TIN will easily identify taxpayers those who will provide false declarations and evade income tax. A technical committee comprising information technology experts has already been formed. It will examine merits and demerits of the newly planned system in consultation with foreign experts. The committee has been asked to submit its report within a fortnight. The new number may be introduced for an interim period initially in order to stopping tax dodgers before introducing an automated system from the middle of the next year, another NBR official said. The system has been already introduced in neighbouring countries like India, Pakistan and Sri Lanka. It has brought dynamism in tax collection in those countries, he added. The International Monetary Fund (IMF) has long been suggesting the authority concerned to introduce automated system for keeping taxpayers' records. The IMF and other development partners have also suggested accelerating reform programme in the board, including introduction of automated system for bringing transparency and dynamism in tax collection. Currently, there are around 1.7 million TIN holders and nearly 1.0 million BIN holders in the county. The NBR has been given revenue earning target of Tk 356.52 billion for the current fiscal. Almost 55 per cent of the target will come from income tax and VAT departments. The target of income tax and VAT departments are Tk 69.60 billion and 126.75 billion respectively.
|