No tax fair, online return submission this season

Business
No tax fair, online return submission this season
Individual taxpayers must submit their tax returns at tax offices this season as the National Board of Revenue (NBR) has decided against holding its total annual tax fair in order to avoid mass gatherings and curb the chance of the spread of coronavirus, said officials.

Your choice has raised concerns among taxpayers over if they would face hassles at the tax offices instead of the moment service they typically reach the fair, which usually occurs in November. 

Despite its lack of user-friendliness, the web returns filing system has been favored by some taxpayers this season amid the pandemic. However, the digital tax filing system has not been updated, for which it isn't ready for taxpayers, said, officials.

Taxmen, however, said these were getting ready to create a taxpayer-friendly atmosphere at field offices in order that individuals could file their wealth and annual income statements without hassle.

"We will provide all of the services to taxpayers in a fair-styled environment," said Mother Hossain, commissioner of tax zone-11.

The field office of tax has recently sent messages to the taxpayers to submit returns. It is also getting ready to establish makeshift booths to receive returns from taxpayers and provide acknowledgment receipts instantly, he said.

Top officials of some tax zones likewise have similar plans as the NBR already directed field offices to supply "visible and exceptional" services to make a festive mood among taxpayers.

It also asked field offices to create booths in open spaces such as for example parking lots to accept taxation statements and offer services from the first day of November.

Even in the end, Md Ariful Islam cannot dispel apprehensions over facing hassles.

Up until this past year, the banker has always prepared all of the taxation statements of his family members who work for various organizations.

He used to afterward submit those files at booths of respective tax zones at the tax fair that the NBR has been organizing since 2010 to get returns and offer tax-related assistance.

The thought of holding a tax fair was to motivate people into paying taxes and increasing the country's tax-GDP ratio, one of the lowest globally.

This season, Islam said he'd need to go round from one tax circle to some other to submit his returns and that of his family.

"This is likely to be considered a hassle as the choice to submit returns online isn't available," he said.

"My colleagues are also concerned about getting acknowledgment receipts against submitted returns on the spot."

"Still, we don't get tax payment certificates without paying extra to tax offices. The question is whether we must visit tax offices later and pay extra to acquire acknowledgment slips of submitted returns," he said.

"It would have been ideal for us if we could file returns online. But that's not possible," said Islam.

For expectant mother Lam-ya Mostaque, that is a very big problem.

Joining the Bangladesh Institute of International and Strategic Studies as a research officer 2 yrs back, she is comparatively new to submitting income tax returns.

Having heard about the hassles of submissions through tax office visits, Mostaque said she was content with her last two tax fair visits.

Not surprisingly new concern, she now says she'd somehow figure out away.

Through last year's fair, the NBR had collected Tk 2,613 crore in taxes. Some 6.55 lakh returns were submitted while 18.63 lakh persons were said to have obtained tax-related assistance.

When it comes to online taxation statements submission, 2,700 were submitted in FY 2019 whereas over 6,000 in FY 2020.

Hafiz Ahmed Murshed, member (tax management and services) of the NBR, said taxpayers would not be able to file returns online this year as the system had not been updated.

The NBR also didn't renew a contract with Vietnam-based vendor FPT Information System Corporation for the maintenance and procedure of Bangladesh Integrated Tax Administration System (Bitax).

The tax authority recently went for a "technical audit" following allegations that Bitax was not a user-friendly apparatus and had didn't attain desired goals.

"We wrote to Buet (Bangladesh University of Engineering and Technology) for carrying out the work," said Murshed.

Bangladesh currently has a lot more than 54 lakh registered taxpayer identification number (TIN) holders.  

And aside from certain cases, all of the registered taxpayers must submit income statements irrespective of whether they have taxable income or not.

People who don't have taxable incomes but need to get TINs for selling land will never be required to submit taxation statements, according to the NBR.

Holders of bank cards who don't have any income, such as for example students, are also spared from filing returns, it says.

The TIN holders must file returns even if they do not have any income, said a senior official of the NBR.

As virtually all the taxpayers will be asked to furnish returns, tax offices are also more likely to see increased gatherings of individuals this year.

An income tax commissioner wanting to remain unnamed said it might be tough to make sure social distancing and enforce health guidelines if taxpayers come at the eleventh hour.

"We are worried too," he said.

Enough time for submission of income tax returns for individual taxpayers starts on July 1 and ends on November 30. Taxpayers can submit returns later too through by presenting time petitions at the respective field offices of taxes.

The commissioner said these were motivating staff and officials to make sure better services to taxpayers. "We are also issuing warnings that action will be studied if taxpayers complain of harassment," he said.

Nasiruddin Ahmed, another former chairman of the NBR, said concerns had arisen among taxpayers over if they would get the same spontaneous and hassle-free services of tax fairs at tax offices.

But the decision to not holding the show is justified from the perspective of public health, he said, suggesting full automation of the tax system.

"The tax authority should ensure that there is absolutely no harassment. An environment of a fair ought to be created at tax offices," said Muhammad Abdul Mazid, a former NBR chairman.

A senior official of the NBR said your choice never to holding the tax fair has been taken because of the pandemic.

"We saw huge gatherings in fairs in the past. It would have already been tough to control the huge crowds in the fair premises and ensure social distancing if we went ahead with organising the fair," said a senior official of the NBR.

Shams Mahmud, president of the Dhaka Chamber of Commerce and Industry, said the NBR must be sure strict social distancing and public health insurance and safety measures to make sure a safe environment for the taxpayers.

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