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2007 Assessment

Bangladesh: Integrity Indicators Scorecard

Bangladesh: Integrity Scorecard Report > Sub-Category: Taxes and Customs
Indicators		Score
58	In law, is there a national tax collection agency?	100
59	Is the tax collection agency effective?	88
60	In practice, are tax laws enforced uniformly and without discrimination?	50
61	In law, is there a national customs and excise agency?	100
62	Is the customs and excise agency effective?	75
63	In practice, are customs and excise laws enforced uniformly and without discrimination?	50

Indicator and sub-Indicator Details

In law, is there a national tax collection agency?

58: In law, is there a national tax collection agency?

Score:

YES

Comments: The National Board of Revenue (NBR) is the central authority for tax administration in Bangladesh. It was established by President's Order No. 76 of 1972. Administratively, it is under the Internal Resources Division (IRD) of the Ministry of Finance (MoF) The NBR is responsible for the collection of all these taxes. Major tax laws in Bangladesh are the Customs Act, 1969, Income Tax Ordinance, 1984, and the VAT Act, 1991. Travel Tax Act, 2003, Provisional Collection of Taxes Act, l931 complements Customs and VAT collection. [ LINK ]

References: President's Order No. 76 of 1972

The Finance Act, 1987, [ LINK ]

Taxes Act, 1931 (XVI of 1931)

Is the tax collection agency effective?

59a: In practice, the tax collection agency has a professional, full-time staff.

Score:

100

Comments: Under the overall control of IRD, NBR administers the Excise, VAT, Customs and Income-Tax services consisting of 3,434 officers of various grades and 10,195 supporting staff positions (Approved set-up was on Feb. 9, 2000).

References: National Board of Revenue, [ LINK ]

59b: In practice, the tax agency receives regular funding.

Score:

100

Comments:

References: Ministry of Finance [ LINK ]

National Bureau of Revenue [ LINK ]

In practice, are tax laws enforced uniformly and without discrimination?

60: In practice, are tax laws enforced uniformly and without discrimination?

Score:

100

Comments:

References: Interview with Mr. Motiur Rahman, Joint commissioner, Customs House, Rajshahi, Aug. 25, 2007, Dhaka.

Center for Governance, BRAC University, Bangladesh, The State of Governance in Bangladesh 2006, p-33-35, www.cgs-bu.com

In law, is there a national customs and excise agency?

61: In law, is there a national customs and excise agency?

Score:

YES

Comments: The National Board of Revenue (NBR) is the central authority for tax administration in Bangladesh. It was established by President's Order No. 76 of 1972. ([ LINK ]). Bangladesh Customs is working under the umbrella of the NBR, which is the apex body for direct and indirect tax revenue in Bangladesh.There are four customs houses and 30 active land customs stations for import and export activities and for passenger movement across Bangladesh ([ LINK ]). Customs Department collects customs duty, supplementary duty etc.

References: President's Order No. 76 of 1972 Customs Act, 1969

Is the customs and excise agency effective?

62a: In practice, the customs and excise agency has a professional, full-time staff.

Score:

100

Comments: In TIB study (May 2007) entitled " Problems and Potentials of Chittagong Port: Follow-up Diagnostic Study" revealed that 33.3 percent in Chittagong customs are vacant posts. Like any other regional and head office of Bangladesh Customs, Chittagong Customs office lacks educated, experienced and efficient manpower, which is essential for operating this highly technology-dependent environment. It was found that many officials working in Chittagong Customs House cannot verify import-export documents without the direct cooperation of C&F agents and cannot operate computers by running ASYCUDA++ software.

References: Transparency International Bangladesh, Follow-up Diagnostic Study on Chittagong Port, entitled " Problems and Potentials of Chittagong Port: Follow-up Diagnostic Study", May 12, 2007, [ LINK ]

Bangladesh Customs [ LINK ]

62b: In practice, the customs and excise agency receives regular funding.

Score:

100

Comments:

References: Ministry of Finance National Budget, [ LINK ]

Monthly Report on Fiscal Year, (April FY 2006-2007) ( Provisional),Ministry of Finance, Finance Division.

Bangladesh Economic Review 2007 (available in Bengali on the website) [ LINK ]

In practice, are customs and excise laws enforced uniformly and without discrimination?

63: In practice, are customs and excise laws enforced uniformly and without discrimination?

Score:

100

Comments: Corruption has taken an institutional form in the offices of the Customs Department of Bangladesh. Everybody assumes that no job can be done here on time without bribery or tips. Even the customs laws and regulations are enforced with discrimination. A TIB study (May, 2007) entitled "Problems and Potentials of Chittagong port: A Folow-up Diagnostic Study" revealed that among the consignments of CRF commodities brought between the periods July 2005 - February 2006 and July 2006 - February 2007, the total number of consignments imported through false declarations revealed through manual examination was 490. During the same period, the customs authorities detected 695 incidents of false declarations by examining the CRF certificates. This took place by mutual understanding between importers, PSI agency and Customs officials, who accepted bribes.

References: Transparency International Bangladesh Problems and Potentials of Chittagong port: A Folow-up Diagnostic Study , May 12, 2007, [ LINK ].

Centre for Governance Studies, BRAC UNIVERSITY, BANGLADESH, The State of Governance in Bangladesh 2006, p-33-34, 44 December 2006, www.cgs-bu.com

Dissecting Public Sector Corruption in Bangladesh: Issues and Problems of Control, Public Organization Review, A Global Journal, Netherland, 2004 [ LINK ]