Tax return submission grows 16%
After an extension of two months, 35.40 lakh tax returns were submitted till 31 January, which is about 17% more than the figure in the same period of the previous year.
The number of Tax Identification Number (TIN) holders in the country is almost 1 crore, according to data of the National Board of Revenue. Almost all of them are subject to mandatory return submission.
This means that two-thirds of TIN holders have not submitted their tax returns, which experts consider unsatisfactory.
“Considering the number of TIN holders in the country, submission of returns of slightly more than 35 lakh is not satisfactory,” Dr Syed Md Aminul Karim, former NBR member (Income Tax Policy), told.
“Many people worry about potential risks when filing taxes. They fear being harassed by tax authorities if they disclose their income and assets,” he explained.
Besides, another reason is that people’s actual income has decreased due to inflation and they lack accurate information about the new tax laws, Karim added.
However, Sayed Mohammad Abu Daud, NBR Member (Tax Admin and Human Resources Management), expressed satisfaction with the numbers.
“We are optimistic because the period for submitting the company’s returns has not yet expired. As a result, it will increase more,” he said.
For companies, the deadline has been extended to 28 February next year from the previous date of 15 January.
According to NBR data, Tk5,800 crore was collected through tax returns from individual taxpayers till the end last year. It was 18% higher than the same period last year.
Returns submitted till January last year were a little over 30.28 lakh. NBR chairman a few months ago said the number had increased to about 35 lakh by the end of fiscal year 2022-23.
NBR member Aminul Karim said some strict penalties for delayed tax return in the new tax law serve as a deterrent to filing further tax returns. “This means that like in the past years, the return may not be much after the prescribed time.”
Until two years ago, producing TIN was mandatory to access 35 types of services. The move increased TIN registrations, but not the rate of tax returns.
Consequently, the National Board of Revenue (NBR) has now mandated the submission of Proof of Submission of Return (PSR) for 38 types of services. Last year, the new Income Tax Act increased this number to 43.
Some of the NBR officials had expected that around half of the TIN holders will file their returns this time because of these initiatives.
Muhamad Abdul Mazid, former NBR chairman, said the institutions or organisations which are responsible for verifying PSR, may not be fulfilling their responsibilities properly.
