107
Grant No. 07
11 - Internal Resources Division
Medium Term Expenditure
(Taka in Thousand)
Projection
Budget
Description
2016-17
2017-18
2018-19
Non-Development
Development
Total
Revenue
Capital
Total
1.0
Mission Statement and Major Functions
1.1
Mission Statement
Mobilize adequate domestic resources by establishing an internationally recognized people-friendly and
time-befitting revenue and savings administration based on the principles of equity.
1.2
Major Functions
1.2.1
Imposition and collection of direct and indirect taxes and formulation/ revision of relevant laws/ rules and
regulations;
1.2.2
Monitoring and controlling the activities of the offices engaged in collection of income tax; value added tax,
import-export duty, and supplementary duties;
1.2.3
Formulating tax policies and tax laws, preparing revenue budget, fixing targets of revenue collection and
entering into agreements with international organizations and other countries on issues relating to taxation
and general co-operation;
1.2.4
Identifying areas and fixing the scope and limit of direct and indirect taxes, increasing the number of new
taxpayers and augmenting tax revenue by motivating people for voluntary compliance;
1.2.5
Managing the entire administrative matters relating to Customs, Excise, Income tax departments and the
Department of National Savings;
1.2.6
Carrying out functions relating to printing and supply of all types of stamps and according to approvals for
holding lotteries;
1.2.7
Collection of disputed revenues through settlement of tax, customs and VAT litigations; and
1.2.8
Formulating, updating and implementing policies for national savings schemes.
2.0
Medium Term Strategic Objectives and Activities
Medium Term Strategic
Objectives
Activities
Implementing
Departments/Agencies
1
2
3
1. Adequate revenue
mobilization to support
 Motivate people to pay taxes by undertaking
publicity &public relations activities, providing
tax education and honoring the best VAT and
 National Board of
Revenue
108
Medium Term Strategic
Objectives
Activities
Implementing
Departments/Agencies
1
2
3
Government expenditures
tax payers
 Introducing automation and e-payment tax
management systems
 Rationalizing tax exemptions
 Printing and supply of judicial and non-judicial
stamps
 Secretariat
 Approving lottery management activities as
per lottery policy
2. Efficient, equitable and
effective tax
administration
 Disposal of disputed cases
 Introducing the ‘Alternative Dispute
Resolution’ (ADR) to realize disputed taxes
 National Board of
Revenue
 Undertaking intelligence activities and
preventive measures to curb tax evasion
3. Enhancing and widening
the base and share of
direct taxes
 Undertaking external surveys and spotassessment
 National Board of
Revenue
 Widening the scope of tax deductions at
sources
 Entering into agreements on the avoidance of
double taxation
 Secretariat
4. Simplifying tax laws and
procedures and ensuring
taxpayers friendly
environment
 Modification and revision of laws, rules and
regulations relating to Income Tax, VAT and
Custom Duties
 Secretariat
 Establishing ‘Help Desks’ for tax payers
 National Board of
Revenue
5. Mobilizing domestic
savings
 Formulating and implementing savings
schemes suitable for the people of different
classes and professions including women and
senior citizens
 Secretariat
 Fixing and rationalizing the profit rates,
investment ceilings, tax deductions at sources
for the savings schemes.
 Secretariat
 Simplifying investment activities in National
Savings Schemes and improving quality of
services
 Department of National
Savings
 Department of National
Savings
3.0
Poverty and Gender Reporting
3.1
Impact of Strategic Objectives on Poverty Reduction and Women's Advancement
3.1.1
Adequate revenue mobilization to support Government expenditures:
Impact on Poverty Reduction: Ministries/Divisions used the revenue mobilized by this Division to
implement their poverty reducing programmes.
Impact on Women’s Advancement: Ministries/Divisions used the revenue mobilized by this Division to
implement their poverty reducing programmes.
109
3.1.2
Efficient, equitable and effective tax administration
Impact on poverty alleviation: No direct impact
Impact on Women’s Advancement: No direct impact.
3.1.3
Enhancing and widening the base and share of direct taxes
Impact on Poverty Reduction: No direct impact.
Impact on Women’s Advancement: No direct impact
3.1.4
Simplifying tax laws and procedures and ensuring taxpayers’ friendly environment
Impact on Poverty Reduction: The low-income group people of the society has been exempted from
payment of taxes by the fixing the general tax-exemption ceiling at Tk. 220,000.
Impact on Women’s Advancement: The tax-exemption ceiling for women has been increased to Tk.
275,000 from Tk. 250,000. It has a direct impact on women advancement.
3.1.5
Mobilizing domestic savings
Impact on Poverty Reduction: The low and middle income group people of the country are becoming
self-reliant and financially solvent by investing their small savings in different profitable saving schemes of
the Government.
Impact on Women’s Advancement: ‘Paribar Sanchaypatra’ bearing higher interest rates introduced to
help women invest their small savings and attain financial solvency.
3.2
Poverty Reduction and Women’s Advancement Related Spending
(Taka in Thousands)
Particulars
Budget
2016-17
Projection
2017-18
2018-19
Poverty Reduction
Gender
4.1
Priority Spending Areas/Programmes
Priority Spending Areas/Programmes
Related Strategic Objectives
1. Rationalising organisation, manpower and logistics and
developing
infrastructures:
Expansion
and
rationalization
programmes of the organization, manpower and logistics have been
undertaken in line with the growth of the national economy. The
‘Rajaswa Bhavan’ Project has been undertaken with a view to establish
a modern technology-based revenue office. To provide better services
to the taxpayers, all tax offices from different parts of the Dhaka city are
being brought phase by phase in a single compound. This program has
been accorded the highest priority considering the importance of shifting
and modernising the offices of Income Tax, VAT and Customs and
Department of National Savings to a same building/complex at the
district and divisional levels.

Efficient, equitable and
effective tax administration
2. Developing ICT Infrastructure and Automation: With a view to
providing better services to the taxpayers and increasing revenue
collections, revenue departments are being digitalized through an
integrated approach by automating Income Tax, VAT and Custom
departments and establishing connectivity among the three
departments. The Department of National Savings and Taxes Appellate
Tribunals are also being automated. A system has been introduced to

Efficient, equitable and
effective tax administration

Simplifying tax laws and
procedures and ensuring
taxpayers’ friendly
environment.
110
Priority Spending Areas/Programmes
Related Strategic Objectives
pay taxes through online from the taxpayers bank account to bring more
dynamism in the payment procedure of income tax, duty and VAT using
Q-cash platform directly.
3. Expanding the tax net, curbing tax evasion and simplifying tax
laws and the tax payment procedures: The new rules to pay house
rent through bank account has been introduced to expand tax net and
curb tax evasion. Specific amount of advance tax on the land
transferred in important commercial and residential areas and specific
taxes on the basis of floor areas of the property transferred has been
imposed. Capacity of the central intelligence unit is being enhanced.
New laws are being formulated and the old laws are being revised. VAT
and Supplementary Duty Act, 2012 has already been introduced. Post
clearance audit and risk management program has been undertaken to
curb tax evasion. Programs to give special benefits to risk free cargos
have also been introduced. Stakeholders have been involved to avoid
tax evasion through trade facilitation.

Simplifying tax laws and
procedures and ensuring
taxpayers’ friendly
environment.

Efficient, equitable and
effective tax administration
4. Tax education, advertisement and taxpayers’ service: Various
activities such as observing the ‘income tax day’, organizing ‘income tax
fair’, observing ‘VAT day’, the ‘international customs day’, identifying
and rewarding the best taxpayers, introducing tax cards, publishing
leaflets and booklets, motivating and providing training to taxpayers,
arranging talk shows and making publicity on tax education in print and
electronic media are being performed to develop the culture of tax
compliance. Revenue departments’ websites are being developed and
modernised on a regular basis. Various forms, SROs, laws, rules and
regulations are being uploaded in the websites. ‘Help Desks’ and ‘One
Stop Service’ facilities have been established to provide better services
to the taxpayers.

Simplifying tax laws and
procedures and ensuring
taxpayers’ friendly
environment.
4.2
Medium Term Expenditure Estimates and Projection (2016-17 to 2018-19)
4.2.1
Expenditure by Department/Agencies/Operational Units
(Taka in thousands)
Description
Budget
Revised
Budget
2016-17
2015-16
4.2.2
Projection
2017-18
2018-19
Expenditure by Economic Group Wise
(Taka in thousands)
Description
Economic
Group
5.0
Budget
Revised
Budget
2016-17
2015-16
Projection
2017-18
2018-19
Key Performance Indicator (KPIs)
Indicator
Related
Strategic
Objectives
Unit
Revised
Target
2
3
4
1,2
%
9.79
1,2,3
Ratio
1,2,3
%
Actual
Target
2014-15
1
1.
Tax-GDP ratio
2.
Ratio of direct to indirect taxes
3.
Share of major taxes in total tax
revenue:
a.
Income tax, other taxes and
customs
b.
Share of local VAT in total tax
Revised
Target
2015-16
Medium Term Targets
2016-17
2017-18
2018-19
8
9
10
9.56
9.72
9.89
38:62
38:62
38:62
38:62
38.40
38.40
38.40
38.40
37.74
37.74
37.74
37.74
5
6
7
111
Indicator
Related
Strategic
Objectives
Unit
Revised
Target
2
3
4
Actual
Target
2014-15
1
Medium Term Targets
Revised
Target
2015-16
5
6
2016-17
2017-18
2018-19
8
9
10
7
revenue
c.
Revenue at the import level
4.
Cost of collection to total tax
revenue
2
5.
Non-NBR Revenue (Stamp)
Collection
1
23.86
23.86
23.86
23.86
%
0.49
0.47
0.45
0.45
%
8.75
9.00
9.50
9.50
6.0
Recent Achievements, Activities, Output Indicators
Expenditure Estimates of the Departments/Agencies
6.1
Secretariat
6.1.1
Recent Achievements: To add momentum in revenue collection, organogram of the Internal Resources
Division has been revised to include one budget wing and three sections namely Stamp Administration
Section, Policy and Law Section and Audit Section with necessary provision of manpower. Value Added
Tax and Excise Duty Act 2012 have been formulated. Department of National Savings has been upgraded
to Directorate of National Savings with 84 new posts of different levels, and 3 new divisional offices and 12
special bureaus. A significant number of new staff has been recruited in the offices of NBR.
6.1.2
Activities, Output Indicators and Targets
Activities
Output
Indicator
1
2
Related
Unit of
Revised Actual
Strategic Measurement Target
Objectives
2014-15
3
4
5
8000
Target
and
Revised
Target
2015-16
7
6
Targets
Medium Term Targets
2016-17 2017-18
9
10
8500
9000
9500
8
1.
Printing and supply of judicial
and non-judicial stamps
Stamps printed
and supplied
1
Number
(lakh)
2.
Approving lottery
management activities as per
lottery policy
Lottery activities
approved
1
Number
6
6
6
6
Entering into agreements on
the avoidance of double
taxation
Agreements
signed
3
Number
2
2
2
2
Modification and revision of
laws, rules and regulations
relating to Income Tax, VAT
and Custom Duties
Laws and
procedures
modified/revised
4
Number
50
45
40
40
Formulating and implementing
savings schemes suitable for
the people of different classes
and professions including
women and senior citizens
Various types of
savings
schemes
formulated
5
Number
5
5
5
5
Fixing and rationalizing the
profit rates, investment
ceilings, tax deductions at
sources for the savings
schemes
Interest
rates/investment
ceilings/rules for
tax deductions
at source
revised*
5
Number
5
5
5
5
3.
4.
5.
6.
6.1.3
and
2018-19
11
Medium Term Expenditure Estimates by Operational Unit, Programmes and Projects
(Taka in Thousands)
Name of the Operational Unit/Programme/
Project
Related
Activity
Actual
2013-14
Budget
1
2
3
4
Revised
2014-15
5
Medium Term Expenditure Estimates
2015-16
2016-17
2017-18
6
7
8
6.2
National Board of Revenue (NBR)
6.2.1
Recent Achievements: National Board of Revenue has collected Tk. 1, 09,216.90 crore in FY 2013-14.
ASYCUDA World software has been launched in 2012 in Chittagong Customs House, Benapole Customs
House, Mangla Customs House, Customs House (ICD) Kamalapur to automate the processing activities of
112
customs department. 20.23 lakh customs declarations and 7000 VAT registration have been done online in
2013-14 FY. In the last three years, income tax fairs have been organized in 64 districts. 20 highest tax
payers were awarded tax card. An amount of Tk. 54 crore was realized against disputed tax claim by using
ADR mechanism.
6.2.2
Activities, Output Indicators and Targets
Activities
Output
Indicator
Related
Strategic
Objectives
1
2
3
1. Motivate people to pay
taxes by undertaking
publicity & public
relations activities,
providing tax education
and honoring the best
VAT and taxpayers
Income tax fair
organized to
create tax
awareness
2. Introducing automation
and e-payment tax
management systems
4. Disposal of disputed
cases by the Taxes
Appellate Tribunal
5. Introducing the
‘Alternative Dispute
Resolution’ (ADR) to
realize disputed taxes
6. Undertaking intelligence
activities and preventive
measures to curb tax
evasion
Target
2014-15
4
5
Revised
Target
2015-16
6
7
8
Medium Term Targets
2016-17
2017-18
2018-19
9
10
11
65
66
84
2000
2500
2600
2700
Tax cards
issued to highest
taxpayers
20
20
20
20
Online
processing of
customs
declarations
2100000
212000
0
2130000
21500000
Online VAT
registration
0
0
300000
10000
0
0
50000
60000
Online TIN
registration
900000
40000
45000
50000
E-filing of
income tax
returns
0
40000
50000
60000
5
10
5
2
Number
5000
5000
5000
5200
Number
200
100
75
50
50
25
18
12
5000
5500
6200
6500
300
500
600
700
500
500
450
400
20
25
23
20
350
450
500
500
50000
50000
50000
50000
Print &
electronic media
campaigns
conducted
1
1
Tax exemptions
& concessions
phased out
1
Cases disposed
of
2
Cases resolved
2
Amount realized
Number
Number
Number
(items)
Taka
(crore)
Amount of
evaded customs
duty detected
Amount of
evaded VAT
detected
Amount of
evaded income
tax detected
Taka
(crore)
2
Prosecutions
started for
evasion and tax
frauds
Number
Tax
evasion/fraud
related
complaints
investigated
7. Undertaking external
survey and spotassessment
Actual
64
Online VAT
returns
3. Rationalizing tax
exemptions
Unit of
Revised
Measurement Target
Spot
assessments
made for small
businesses &
professionals
3
Number
113
Activities
Output
Indicator
Related
Strategic
Objectives
Actual
Unit of
Revised
Measurement Target
Target
2014-15
External surveys
conducted
Revised
Target
2015-16
Medium Term Targets
2016-17
2017-18
50000
50000
50000
50000
8. Widening the scope of
tax deductions at
sources
Individuals/orga
nizations
brought under
TDS
3
Number
75
100
150
200
9. Establishing ‘Help
Desks’ for taxpayers
Help Desks
operationalised
4
Number
2
10
15
20
6.2.3
2018-19
Medium Term Expenditure Estimates by Operational Unit, Programmes and Projects
(Taka in Thousands)
Name of the Operational Unit/Programme/
Project
Related
Activity
Actual
2013-14
Budget
1
2
3
4
Revised
Medium Term Expenditure Estimates
2014-15
5
2015-16
2016-17
2017-18
6
7
8
6.3
National Savingsof Department (NSD)
6.3.1
Recent Achievements: The rate of profit and the upper ceiling of investment have been increased and
mass campaign has been launched in both home and abroad to attract the investors. In FY 2013-14, 500
advertisements were published in the national dailies and 260 advertisements were telecast in television
channels. Through the national savings schemes Tk. 18, 955.30 crore, Tk. 23,326.77 crore and Tk. 24,310
crore were mobilized in 2011-12, 2012-13 and 2013-14 respectively.
6.3.2
Activities, Output Indicators and Targets
Activities
Output Indicator
1
2
1. Formulating and
implementing saving
schemes suitable for the
people of different classes
and professions including
women and senior citizens
Amounts of savings
collected from
savings schemes
Related
Unit of
Revised Actual
Strategic Measurement Target
Objectives
2014-15
3
Taka
(Crore)
Printing of scripts,
storage and
distribution of
savings schemes
6
Printing and
distribution of
registers for sales
and sales statement
Automatic epayment system
introduced
2. Simplifying investment
activities in National Savings
Schemes and improving
quality of services
4
Number
6
Savings service
week observed
throughout the
country
Advertisement
published in daily
news papers
TV advertisement
circulated
6
Revised
Target
2015-16
7
Medium Term Targets
2016-17 2017-18
8
9
10
21000
31153
32730
35800
28.00
32.60
35.70
38.00
37.00
22.00
39.17
42.00
-
70
70
75
3600
4000
4500
4800
200000
250000
350000
380000
75
74
74
74
400
600
650
700
290
100
150
200
Number
(Lakh)
Training on rules
and policies of
savings schemes
Printing and
distribution of
sanchaypatra,
Leaflets, booklets
5
Target
Number
Number
(lakh)
6
Number
2018-19
11
114
6.3.3
Medium Term Expenditure Estimates by Operational Unit, Programmes and Projects
(Taka in Thousands)
Name of the Operational Unit/Programme/
Project
Related
Activity
Actual
2013-14
Budget
1
2
3
4
Revised
2014-15
5
Medium Term Expenditure Estimates
2015-16
2016-17
2017-18
6
7
8