Former National Board of Revenue (NBR) Chairman Dr Muhammad Abdul Mazid. File Photo

DHAKA, Jan 27, 2025 (BSS) – Former National Board of Revenue (NBR) Chairman Dr Muhammad Abdul Mazid today said that comprehensive automation is needed at the revenue board to enhance further the tax-GDP ratio in the country.

Mazid, also a member of the Advisory Committee on NBR reforms, hoped that if that happens, then around 60 percent problems related to the NBR would be resolved.

In order to entrust the revenue board with more authority in revenue collection, the former NBR chairman also suggested for bringing necessary reforms in to the concerned law, which was enacted 53 years ago. 

For this, he said that a committee with experienced and skilled people should be formed.
 
Dr. Abdul Mazid came up with such remarks at a roundtable discussion of the NBR Reform Committee, organized jointly by the Institute of Chartered Accountants of Bangladesh (ICAB) and the Economic Reporters’ Forum (ERF), held at the CA Bhaban in the capital.

Presided over by ICAB president Maria Howlader and moderated by ICAB CEO Subhashish Bose, the roundtable discussion was addressed, among others, by Advisory Committee members on NBR reforms and former NBR Chairman Dr. Nasiruddin Ahmed, former members of the NBR Md. Farid Uddin and Aminur Rahman, senior research fellow of the Centre for Policy Dialogue (CPD), Towfiqul Islam Khan, FBCCI Administrator Hafizur Rahman, Chairman of Policy Exchange Bangladesh M Masrur Reaz, former president of ICAB Jamal Uddin Ahmed, and ERF President Doulat Akhter Mala.

Noting that the CA firms have many roles to play in corporate governance, Mazid said had they worked properly, then bad situation in banks and financial institutions could not have created while the tax-GDP ratio could have been increased further. 

Dr. Nasiruddin said if there is no corporate governance, then how taxes would be collected? 
Stressing on ensuring business-friendly tax policy to enhance the tax GDP ratio, he said there should be an assurance that whatever policy is taken it should be continued.

Towfiqul Islam Khan said that the concerned authorities need to consider whether it will be a long-term reform of the NBR or some amendments or something new.

“Whatever policy is taken, it should be permanent,” he said, adding that it would not be possible to prevent tax evasion if the NBR is not digitalized.

“In order to boost the tax-GDP ratio, all should come up with due accountability from their respective positions. We’ll have to ensure full automation at the NBR, otherwise it won’t be possible to check tax evasion, money laundering and corruption,” he added.

Dr Masrur Reaz said that people usually want to pay taxes, but due to various complexities, it sometimes becomes not possible. 

For this, a unique number can be made for the taxpayers. In addition, arrangements could be made to inform the taxpayers why people are paying tax-VAT and where the taxpayers’ money is being spent.

“Then the tax collection rate will increase,” Reaz said recommending that the tax collection system be made 'integrated digitalized'. 

Jamal Uddin said that there would be no momentum if tax collection cannot be increased.
 
He said many Asian countries, such as Mongolia, Cambodia, Thailand and Malaysia, have ensured cent percent digitalized in tax collection whereas Bangladesh is still lagging behind.

“We’ll have to come out of this trend while if the tax system is digitalized fully, then many problems will be resolved,” he added.