The National Board of Revenue (NBR) is being restructured to separate its tax-policy formulation and-implementation branches to remove "audit-related fears and harassment of taxpayers", says the finance minister.
Amir Khosru Mahmud Chowdhury informed parliament Sunday about the current government's stance on the NBR-bifurcation bid earlier readied under financial-sector reform drives launched after the 2024 uprising.
He made the remarks during the question-answer hour in the Jatiya Sangsad while responding to a supplementary query from Md. Abdul Alim, Member of Parliament for Bagherhat-4. Deputy Speaker Barrister Kayser Kamal presided over the session.
The finance minister acknowledges that there is widespread fear among people regarding coming under the tax net for various reasons, which discourages voluntary compliance and results in less revenue receipt.
"It is true that there is a fear among people about falling under the tax net for various reasons. That is why people are reluctant to come forward. It is not just about audits -- there are many other barriers contributing to taxpayers' apprehensions," he told the House.
Referring to the structural overhaul of the NBR to simplify the tax system, the minister stated: "We are moving the entire tax system toward bifurcation. Those who formulate tax policies at the NBR and those who implement them are being separated."
Previously, this overlap created significant opportunities for corruption and undue influence. Separating the two functions will largely eliminate such opportunities, he asserted.
The government is striving to ensure transparency in implementation, the minister told the lawmakers.
"We want every taxpayer to come forward to pay taxes easily. Bangladesh's tax-to-GDP ratio is very low. The lack of sustained efforts on this front in previous years has caused us to fall far behind," he said.
"The simpler we make the tax system, the more people will voluntarily come forward. We are focusing on that."
The finance minister has assured parliament that the government is identifying and resolving issues such as audit-related problems to simplify the tax system, promising that positive results would be visible very soon.
