Business Leaders Express Strong Frustration Over NBR Officials’ Harassment and Inefficiency

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News Desk: Business leaders from various sectors have voiced strong frustration over harassment, irregularities, inefficiency, and unreasonable tax collection by field-level officials of the National Board of Revenue (NBR). The complaints were raised during the first stakeholder session of the “Meet the Business” program held on Wednesday at the Revenue Bhaban in Agargaon, Dhaka. Top business figures and representatives of trade organizations attended the meeting.

Business representatives highlighted issues such as lack of coordination in Advance Income Tax (AIT), high turnover tax rates for small businesses, harassment by customs and port authorities during import-export processes, unnecessary lawsuits, complications in customs procedures, difficulties in raw material clearance from bonded warehouses, and imposition of advance tax on essential commodities including onions. The restaurant sector also shared real-life examples of officials’ harassment and challenges in laboratory testing at customs.

Additionally, business leaders called for better coordination of tax refunds and effective tax rates, easier clearance procedures for perishable goods, and a reduction in high minimum tariffs. Despite the criticism, they appreciated some of NBR’s recent initiatives aimed at facilitating business operations.

Acknowledging the complaints, NBR Chairman Md. Abdur Rahman Khan assured necessary reforms. “We need to revise some rules to simplify business activities. No one will face discrimination in the new generation,” he said. He noted that taxpayers are contributing a portion of their hard-earned income but often feel they are not receiving proper services in return. To benefit taxpayers, NBR will work more closely with commercial banks, he explained, clarifying that this does not mean monitoring individual bank accounts. The goal is to simplify the tax payment process.

Referring to an incident involving the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), the chairman said a discrepancy in the HS code caused an exporter difficulty in releasing bonded goods. “We instructed to release the goods even if there is an error. It will be resolved through investigation later,” he said. He urged businesses not to operate solely for tax exemptions and emphasized that any waiver should serve the public interest, not personal gain.

Nasir Khan, Managing Director of Gen’s Footwear Limited, expressed anger, saying, “The leather industry has been kept small like a bonsai tree, preventing its growth. We face false lawsuits and, after years of court battles, we finally gain relief, but officials face no accountability or punishment. Increased turnover tax rates put pressure on us, even when we don’t make a profit.” In response, the NBR chairman stated that a system to evaluate the performance of field officials is being planned to ensure accountability.

Priti Chakraborty, Director of Bangladesh Women Chamber of Commerce and Industry (BWWCI), mentioned that under the Income Tax Act, there used to be a three-year interest payment facility, which was abolished in the 2023 fiscal year. A representative of a leading steel mill complained that port authorities deliberately send goods to the internal container depot (ICD), causing extra costs and delays for businesses. “We want goods cleared within three days of free time, but the port sends them to ICDs to boost other businesses,” the representative said.

Chairman Khan urged businesses to actively use the Grievance Redress System (GRS) platform. “Measures must be taken to protect business and increase revenue, and structural reforms are essential,” he said.

Recently, NBR decided that non-bonded exporters can now release raw materials through bank guarantees. At the same time, frozen fish exporters may also receive bonded facility benefits. Automation of bonded procedures is planned to reduce annual audits. NBR announced that from this year, corporate tax returns can be submitted online, and from next week, income tax practitioners can file their clients’ returns digitally. To address taxpayers’ complaints, NBR has launched the GRS platform, which the chairman encouraged businesses to use.