Dhaka, Oct 31 (V7N)- The advisory committee on revenue reform has recommended that the National Board of Revenue (NBR) eliminate the minimum tax as an initial step to phase out certain regressive taxes. In a meeting on Tuesday, the committee further highlighted the importance of automating tax and VAT offices nationwide.
NBR senior officials acknowledged the benefits of moving away from taxes such as Tax Deducted at Source (TDS) and VAT Deducted at Source (VDS) but expressed concerns about the potential impact on national revenue if alternative solutions are not implemented.
Former NBR chairman Dr. Muhammad Abdul Mazid mentioned that officials voiced concerns over limited logistical support, such as vehicles, which they believe hampers their ability to increase revenue collection, despite similar benefits provided to administration-cadre officials. Former VAT member Farid Uddin echoed a positive response from NBR’s leadership regarding the need for reforms, automation, and a potential shift from TDS and VDS structures, raising optimism for effective change.
The Internal Resources Division (IRD) recently formed this five-member advisory body, aimed at modernizing the NBR. The committee will address revenue policies, administrative improvements, and assess the board’s organizational capabilities. It will also focus on ensuring integrity, enhancing governance, and engaging citizens and stakeholders to foster support for revenue reform.
The advisory committee includes former NBR chairmen Dr. Mohammad Abdul Mazid and Dr. Nasiruddin Ahmed, as well as former income tax members Md. Delwar Hossain and Aminur Rahman, and former customs member Farid Uddin. The NBR Member (board administration) is currently providing administrative support to the committee, which was established with the interim government’s Finance Adviser’s approval.
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