Automation of the taxation system will help reduce hindrances and increase taxes, according to the President of the Dhaka Chamber of Commerce and Industry (DCCI), Ashraf Ahmed. Speaking at a workshop on the new Income Tax Act 2023, Ahmed stated that it is not believable that only 4 million out of Bangladesh’s population of 170 million have taxable income. He also highlighted the need for tax professionals to be aware of the details of the corporate tax system and mentioned initiatives that would make it easier for businesses to submit their returns. The workshop was attended by around 60 participants from different corporate houses.
One of the speakers at the workshop, Wakil Ahmed, Joint Commissioner of Taxes, Tax Zone-15, Dhaka, highlighted the increase in taxpayers using the e-TIN service, with over 4 lakh taxpayers paying their taxes through this online service in 2023, compared to 2,50,000 in the previous year. To further encourage the use of online services, Murad Ahmed, Joint Commissioner of Taxes, Taxes Zone-4, Dhaka, requested the business community to utilize e-TDS more.
The DCCI workshop emphasized the potential benefits of tax automation, including reducing hindrances in the taxation system and increasing tax collection. By automating the process, businesses can easily submit their returns and the government can more effectively collect taxes. This has the potential to significantly increase revenue collection in Bangladesh.
The taxation system in Bangladesh has long been criticized for its complexity and inefficiency. Many believe that the current system does not capture the true income of individuals and businesses, leading to a significant tax gap. By implementing tax automation, the government can improve transparency and accuracy in tax collection, ultimately leading to higher revenue collection.
In addition to increasing revenue collection, tax automation can also lead to cost savings for both businesses and the government. By streamlining the tax filing process and reducing paperwork, businesses can save time and resources. The government can also save on administrative costs by automating tax collection and reducing the need for manual processing.
Overall, tax automation has the potential to transform the tax system in Bangladesh. By simplifying the process, increasing transparency, and reducing hindrances, the government can significantly improve tax collection and boost revenue. This will not only benefit the government but also the economy as a whole, as increased revenue can be invested in infrastructure, education, healthcare, and other key sectors.