NBR launches automated withholding tax system

Summary:

The NBR has launched the electronic tax deduction at source system on 7th October, for the public and private agencies to deduct and deposit tax at source without taking the hassle to conduct manually.

Content: 

There were multiple complaints due to the manual tax collection. This type of tax collection at source was time-consuming and the process is also burdensome. There were problems regarding taxpayers and their documents management.

That is why the National Board of Revenue has launched an electronic tax deduction at source (e-TDS) system to automatically settle tax and advance income tax refund claims for taxpayers.

It is anticipated that after the full operation of the E-TDS, taxing at source will increase to 85% from the existing 65%. It is also suggested by Muhammad Muslim Chowdhury, Comptroller and Auditor General of Bangladesh that the Revenue Board replicate the digitized taxation in other areas of revenue collection through.

In the manual tax collection at source it was time consuming. For example a refund requires 2000 reports to be submitted at public offices. On the contrary in the new e-TDS, the tax is deducted at source automatically and deposits it to the state coffers and reports with an automated challan.

The CAG said at the inauguration ceremony that the system features automation intelligence which actually interlinks the points such as the Bangladesh Railway and The Bangladesh Road Transport Authority.

Abdur Rouf Talukdar Senior security of the finance division said that this type of automatic process of the revenue collection will help minimize gap in revenue targets.

The income tax officials have conducted the entire process of e-tds and to protect the security system. No third party had been hired for it. The Revenue Board chairman said the NBR did not have to spend any money for this.

Abdur Rouf Talukdar said the Finance Ministry has developed numerous online service tools in the house saving the public money. He also said that the government receives too many applications after inviting applications for Taka 2500 Covid support.

Their applicants had Taka 5 crore investments in savings tools for stock. However genuinely needy people could only be identified since there was online cross-checking.

 Tax deducted at source or withholding tax accounts for 60% of total income tax collection and the NBR collects tax at source from 53 heads for instance tax on interest income of depositors, source tax on export proceeds of Exporters.

Source: The daily Star

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