The government’s revenue authority has devised a strategic roadmap, a beacon guiding the nation towards a ‘Smart Bangladesh’. Faced with the stark reality of insufficient funds even for the current budgetary needs, the National Board of Revenue (NBR) has charted a course aimed at financing this ambitious vision.
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This three-tiered, time-bound action plan stretches its reach until 2041, a testament to the commitment to sustainable growth. The plan is carefully detailed, highlighting 2025, 2031, and the climax in 2041 as crucial points in its implementation.
NBR’s Automated Sentinel Against Fiscal Hurdles
But the vision stretches beyond mere numbers, reaching into the very fabric of society. The Tax Return Preparer (TRP) system, nurtured through collaboration with the government and the European Union, shall cast its net wide, ensnaring individuals and businesses alike within the embrace of fiscal responsibility.
Yet, even as the gears of progress turn, the specter of unresolved disputes looms large. The NBR, undeterred, shall forge a bastion of resolution—a system, a database, an automated sentinel against the tide of pending court cases. By 2025, a quarter of the revenue cases shall find solace in automation, rising to three-quarters by 2031, until finally, the last vestiges of manual intervention are swept away by the relentless march of time.
But progress is not solely measured in algorithms and databases; it is etched in the hearts and minds of a nation’s workforce. Skill development shall be the clarion call, echoing from the highest echelons of power to the humblest government employee. By 2025, a quarter shall embark upon the journey of self-improvement, followed by half the ranks in 2031, until, at last, every soul is touched by the transformative power of knowledge.
And as the digital age dawns, a new frontier beckons—the realm of cashless transactions. The NBR shall lead the charge, marshaling its resources to pave the way for a future untethered by the shackles of physical currency.
Steering Through Fiscal Constraints
Professor Mustafizur Rahman, a stalwart of the Center for Policy Dialogue (CPD), casts a discerning eye upon the unfolding narrative. In a landscape marred by fiscal constraints, he extends a cautious welcome, recognizing the imperatives driving the quest for augmented revenue in Bangladesh. With the specter of resource scarcity looming large, he lays bare the harsh reality—revenue streams diverted to the relentless pursuit of interest payments, leaving the domestic coffers parched, reliant on the drip-feed of debt.
Drawing from the annals of history, he cautions against the pitfalls of repetition, urging the National Board of Revenue (NBR) to glean insights from past endeavors. For too often have lofty aspirations been shackled by the chains of failure.
Yet, amidst the sage counsel, he delineates the prerequisites for success—a mosaic of investments, physical infrastructure, human capital, and technological prowess. The blueprint for progress demands not just vision, but the fortitude to traverse the treacherous terrain of implementation.
Vendor selection, a seemingly mundane task, emerges as a crucible of decision-making, each choice a fork in the road, dictating the trajectory of success or failure.
But the heart of the matter lies not merely in infrastructure or investment; it resides in the empowerment of the people. The NBR’s mandate extends beyond the balance sheets; it must weave a tapestry of awareness, engaging the populace through participatory measures, fostering a collective consciousness of fiscal stewardship.
Current Tax Collection Scenario
The government’s revenue authority faces a daunting challenge as it strives to collect Tk 1.50 trillion in the final quarter of the current fiscal year to meet even its revised target, as revealed by recent tax receipts showing shortfalls.
A recent analysis suggests that revenue officials may encounter significant hurdles in gathering an average of Tk 500 billion per month in April, May, and June from the existing tax base.
As of March 2024, the National Board of Revenue (NBR) had only managed to achieve 63.36% of its revised annual target. Despite efforts, the tax-revenue collection from July to March amounted to Tk 2.59 trillion, leaving a deficit of Tk 219.30 billion against the pared-down annual target of Tk 4.10 trillion for the 2023-24 fiscal year.
Typically, the revenue board garners around Tk 300 billion in taxes each month. However, a substantial portion of revenue is usually realized in the last month of the fiscal year, buoyed by the implementation of government development projects and intensified tax collection efforts.
Last year, the NBR had set a tax-collection target of Tk 3.70 trillion, with an average growth rate of 10.64% in the third quarter. Comparatively, revenue collection growth was 8.30% in the same period of the previous year.
March 2024 marked a notable exception, with the NBR collecting Tk 332.79 billion in taxes, reflecting a 13% growth compared to the corresponding period of the previous year. However, this collection still fell short of the target by approximately Tk 33.68 billion.
BI and AI to Prevent Tax Evasion
Central to this grand design is the digitization of the revenue system, a transformative force sweeping across the bureaucratic landscape. The NBR envisions a web of connectivity, seamlessly linking disparate entities into a harmonious symphony of fiscal efficiency.
The action plan outlines seven main areas and sets specific targets to reach its ambitious goal within three benchmark years.
According to the plan, connectivity will be established with various third-party systems. These include power-producing companies, the Bangladesh Road Transport Authority, the Chief Controller of Exports and Imports, the National Telecommunication Monitoring Centre, the Bangladesh Investment Development Authority, the Bangladesh Export Processing Zones Authority, the Bangladesh Economic Zones Authority, the Bangladesh Garment Manufacturers and Exporters Association, the Bangladesh Knitwear Manufacturers and Exporters Association, Bangladesh Bank, iBAS++, several scheduled banks, city corporations, the Land Ministry, and the Bangladesh Telecommunication Regulatory Authority.
Under this masterstroke of governance, the NBR pledges to forge ahead, completing 25% of its interconnectivity endeavor by 2025. By 2031, this figure shall double, a testament to the relentless march towards progress. And by 2041, as everything wraps up, a country standing together in financial unity, ready to reach its highest point of success.
At the vanguard of this revolution stands the NBR, wielding the twin swords of technology and innovation. E-invoicing, fortified by the twin pillars of Business Intelligence (BI) and Artificial Intelligence (AI), shall pierce the veil of tax evasion, casting light upon the shadowy recesses of fiscal impropriety. Time, a relentless taskmaster, shall witness the NBR’s ascent—25% by 2025, 50% by 2031, and finally, the zenith of 100% attainment by 2041.
