A finance ministry committee has recommended the government to raise the ceiling of income tax payment through treasury challan to Tk 50,000 from the current Tk 10,000 to facilitate quick deposit of tax money to the public exchequer, officials said.
They said that the committee took the decision to increase the instant supply of tax money to the government as tax payment through pay order, bank cheque and other means causes delay.
The committee, consisting of representatives of the National Board of Revenue, Finance Division, Bangladesh Bank and Office of the Controller General of Accounts, also said that the government should not make treasury challan mandatory for tax payment until full implementation of e-payment and real time cheque encashment system.
Currently, taxpayers can pay taxes through pay order, demand draft and account payee cheque of the commercial banks along with treasury challan (a prescribed form used in depositing any government taxes and fees).
Most of the income tax payers pay taxes through pay order and cheque as they can make payment the highest Tk 10,000 through treasury challan. On the other hand, there is no limit of tax payment through pay order or cheque.
The Finance Division formed the technical committee to assess the proposal of the Cash and Debt Management Committee of the ministry to make treasury challan mandatory for tax payment scrapping other methods.
Finance ministry officials said that according to the Treasury Rules taxpayers could deposit all types of taxes using treasury challan.
The taxes paid through pay order or bank cheque are also later deposited to the government exchequer through treasury challan, they said, adding that the government does not receive its revenue immediately after taxpayers make the payment through pay order and bank cheque due to procedural delays.
Sometimes, taxes are deposited even several months after payment by taxpayers.
It also creates mismatch between the account of revenue collection maintained by the NBR and that of the Office of the Controller General of Accounts.
On the other hand, the government gets the tax money instantly if the taxpayers make the payment through treasury challan helping the government to meet its regular expenses, they said.
Delay in getting its revenue on time affects the interest expenditure of the government, they added.
Raising the ceiling of income tax through treasury challan will increase the cash flow of the government, a high official of the ministry said.
Considering the issues, the committee headed by NBR member (income tax) Abdur Razzak decided to increase the limit, he said.
The recommendation has already been sent to the finance ministry for implementation, he said.
The government in 2003 introduced the provision allowing taxpayers to pay income tax through pay order and account payee cheque to ease tax payment procedure and prevent forgery after the NBR had detected many false treasury challan.
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