The National Board of Revenue (NBR) has found that 57 per cent of the businesses surveyed do not pay income taxes depriving the government of a large amount of revenues.

After one month of survey to identify new taxpayers in the Dhaka metropolitan area, the NBR found that there existed ‘a sense of fear among business people about the payment of income tax.’

Business people think that they would become the victims of income tax officials once they are identified in the NBR survey of not paying taxes. They also feel that NBR would whimsically and unilaterally impose taxes on them once they are identified eligible

for paying income taxes. It would also pave the way for tax officials of seeking bribes from the business people.

According to the NBR, there are now 18 lakh individuals and business houses having tax identification number (TIN). Of them, 12 lakh pay income taxes.

The NBR started its special survey from March 29 last in the city's Basundhara City Shopping Complex to enroll potential new taxpayers for fiscal 2007-08.

Eight survey teams, each comprising three members, conducted the survey in the city's largest shopping mall to identify new taxpayers.

NBR member (tax survey and inspection) Asheque Hossain formally launched the drive.

During the survey, the NBR teams found that there existed a sense of panic among business people about the payment of income tax. “We want to overcome it,” a senior official of the NBR told The New Nation last night.

The official said the NBR has surveyed the large business establishments and houses in the first phase on a priority basis.

The main objective of the survey was to identify new taxpayers among business houses and professional institutions, he said.

"After receiving response of the survey, we will take up the next course of action," he said.

It will take at least three months to conduct the survey in the Dhaka metropolitan area, he added.

The NBR have already served notices and charge a penalty of Tk 250 per day against those who were found not to have filed tax return.

The NBR could also impose 10 per cent additional tax on the assessment or charge minimum Tk 2500 for concealing actual income, he said.

"We are conducting the tax survey in a transparent way and distributed the forms publicly to save time of our valuable tax payers," he said.

A person having tax identification number will have to write the TIN on the form with his name, telephone number and address. No financial statement will, however, be required for a TIN holder, he said.

Although the survey commenced from the capital, it will be conducted across the country in the next 12 to 15 months.

Those found eligible to pay taxes under the survey for the tax assessment year 2007-08 will have to pay their taxes in the financial year 2008-09, the source added.

"The NBR aims to increase the number of potential taxpayers, but they will not have to pay the taxes immediately after the survey," NBR Chairman Badiur Rahman said.

© The Bangladesh Journal