NBR to verify import taxes through customs database

Officials will pull data directly from ASYCUDA system under new directive
 

The National Board of Revenue (NBR) has ordered income tax officials to use import data directly when calculating tax liabilities, a move aimed at curbing evasion and easing the refund burden on businesses.

Under a directive issued Wednesday, tax inspectors must now pull information on import values and advance income tax (AIT) payments from the Business Intelligence server of the ASYCUDA system, used by the NBR to process trade documentation.

The automated customs platform will allow officials to verify goods and taxes paid at the border without relying on documents submitted by importers.

According to importers, the reform addresses a longstanding complaint of AIT often exceeding actual profit margins, forcing them into lengthy refund battles

The order was circulated to tax zones under the income tax wing of the NBR and includes detailed guidelines for officials on how to use the BI server of the ASYCUDA system.

As per the directive, inspecting range officers must retrieve import-related information of taxpayers, if they are importers, from the system while selecting audit cases, reopening tax cases under the Income Tax Act, or correcting erroneous tax assessments.

Sources at the NBR said officials will log into the system from designated computers to collect data and pass verified data to assessment officers in writing. Range officers will also have to record the data regularly in a designated register.

For now, assessors themselves won’t have direct access.

NBR said the system will allow officials to ensure accurate AIT credit, help curb tax evasion, speed up case disposal and make the tax refund process more transparent.

According to importers, the reform addresses a longstanding complaint of AIT often exceeding actual profit margins, forcing them into lengthy refund battles.

Moazzem Hossain Imran, proprietor of Golden Steel Traders, which imports steel in Keraniganj, told The Daily Star that he pays 7.5 percent AIT on shipments, much higher than his profit margin.

To claim a refund of excess AIT, importers must collect import-related documents from the customs and VAT offices and submit them to the tax authorities, after which they often have to wait a long time, he added.

Tax officials usually need to verify the authenticity of those documents either by visiting the offices concerned in person or through official correspondence, he explained. “Now officials can verify everything themselves.”

Amir Hossain, proprietor of Chattogram-based fruit importer Abir Traders, said importers like him pay 5 percent AIT at the import stage. But getting a refund of excess advance tax is quite troublesome.

“Most businesses either fail to get the excess tax back or do not even apply for a refund. With the process becoming simpler now, it will be easier for us to adjust advance income tax and recover any excess payments,” he added.

Tax officials say direct access to import data will speed case settlements, improve credit accuracy, and close evasion loopholes.

The NBR also expects the initiative to result in better coordination between customs and income tax wings, reducing unnecessary harassment of businesses by ensuring transparency.

Snehasish Barua, managing director of SMAC Advisory Services, sees potential but warns of pitfalls.

He noted that using the ASYCUDA system for income tax assessment represents a significant opportunity to curb tax evasion and enhance domestic resource mobilisation.

Beyond that, he said, “The initiative is expected to streamline tax administration, fostering greater transparency, procedural efficiency, and data accuracy. It can ultimately relieve the compliance burden on honest taxpayers by minimising superfluous audits.”

But, to fully realise these benefits, he said robust mechanisms for periodic supervision are essential to ensure uniform adherence to standard operating procedures across all jurisdictional offices.

“While technology is a powerful enabler, the integrity of tax administration fundamentally depends on human ethical conduct,” he noted.

Stating concerns regarding “potential collusion between certain taxpayers and officials to bypass regulations”, he said this must be addressed through stringent oversight and accountability measures.

“Officials must exercise due diligence and professional judgment, recognising that valuation differences are inherent in international trade,” he said.

He further warned, “Over-reliance on system data without contextual verification could lead to unjustified tax adjustments, potentially harassing compliant businesses and hindering rather than helping tax administration.”