The tax authority, for the first time, is going to engage individuals to help new taxpayers file tax return in a bid to increase compliance and narrow the gap between registered taxpayers and regular return filers. 

As planned, the National Board of Revenue (NBR) will provide an incentive to individuals, to be named "Tax Return Preparers (TRPs)", to help it expand the number of tax return filers, which was 36 per cent of the total Taxpayers Identification Number (TIN) holders at 88 lakh as of April this year.

Already it has drafted a rule regarding engaging the TRPs mentioning the rate of incentive.

"We are going to engage the TRPs as it is tough for us to find new tax return filers in suburbs and rural areas with our existing human resource strength. The TRPs will be instrumental in this regard," said a senior official of the NBR.

If they can bring new taxpayers in the return filing, they will get a commission from the NBR on the tax paid by the taxpayers, he said, adding that there were practices of the TRPs in the US and Australia.

The National Board of Revenue will provide an incentive to individuals, to be named Tax Return Preparers, to help it expand the number of tax return filers.

According to the plan, the NBR will offer a 10 per cent incentive on the minimum tax to be paid by the first-time tax return filers.

The tax authority will provide a two per cent incentive on the next Tk 15,000 tax and one per cent for next Tk 50,000 of tax.

The rate of incentive will be 0.5 per cent on the remaining of amount tax to be paid by taxpayers. This will be valid for the first three years, according to a draft rule.

The ratio of incentive will reduce in the fourth and fifth year, according to the plan.

The official said the incentive will be given only for new taxpayers and the TRPs will not get the benefit if they prepare returns of existing taxpayers.

As planned, the NBR will engage people as the TRPs based on the Tax Aptitude & Accounting Test (TAAT). It will issue the TRP certificates for those who will pass the test.

The TRPs will only help taxpayers prepare their tax returns and submit those to the tax administration online, according to a draft rule.