National Board of Revenue (NBR) Chairman Md. Abdur Rahman Khan has said that revenue collection is like collecting honey meaning taxpayers must be protected. “You cannot kill the goose that lays the golden eggs. Taxpayers must not be harassed or oppressed,” he said.

He made these remarks on Wednesday at a seminar held at the NBR headquarters on the occasion of VAT Day. Economic Adviser Salehuddin Ahmed attended the event as the chief guest.

Abdur Rahman Khan said VAT growth hit a setback in 2012. Although the new law was supposed to be simpler than the 1991 Act, it became even more complicated. “Businesses do not pay VAT; they collect it from the public. The fundamental principle of VAT is that businesses are collectors, not payers. This must be correctly established,” he said.

The NBR chairman further stated that there are major leakages in income tax. The main share of revenue should come from income tax, then VAT, and the least from customs duties. But revenue collection is not increasing at the desired rate.

He said digitalization is the best method for strengthening revenue collection, yet even after 32 years, the country has not reached that stage. “If expenditure is high and income is low, debt increases. This is true for families and equally true for the country. I had mentioned this yesterday, but the media reported it incorrectly. The main point is that revenue collection must increase,” he added.

Abdur Rahman noted that although revenue is increasing, it is not rising at the rate it should. “We reduced the turnover threshold from Tk 30 million to Tk 5 million. With that, 500,000 new registrations should have taken place. That did not happen. All business-related information is with the businesses themselves—they know who is outside the tax net. Many now want to invest abroad because they do not receive adequate support from the tax administration. If we cannot ‘nurse’ those who pay taxes, investments will not grow. Revenue collection is like collecting honey—you must protect the taxpayer. You cannot kill the goose that lays golden eggs. Harassment or oppression must not occur in any form.”

With the theme “We will register on time, we will pay VAT correctly,” National VAT Day and VAT Week are being celebrated in Dhaka and all divisional cities and commissioner ate offices.