Submission of tax return
Submission of tax return to be connected to more services' provision
The National Board of Revenue (NBR) has taken a move to put more emphasis on ensuring submission of PSR (proof of submission of income tax return) in related fields aiming to expand tax net as well as enhance revenue collection.
NBR chairman Md Abdur Rahman Khan has recently held a meeting in this regard where he asked the officials to be more active in this matter.
The proof of submission of income tax return (PSR) is now mandatory for 43 Services to execute the decision of the NBR and collect the government treasury.
According to the meeting the NBR chairman asked the field level officials to ensure the submission of PSR in related services.
Recently, Md Abdur Rahman Khan while briefing reporters said that if the field administration could be utilised properly, it would be beneficial for the revenue board to expand its tax net and tax collection.
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In this connection, he said that for any construction of a building under Rajuk, CDA, KDA, RDA and others, submission of PSR is mandatory.
“We could send inspectors there to see whether the related authorities are following the rules properly or not,” he said.
The NBR chief mentioned that if the related authorities are not following the rules, the NBR will create awareness among them.
“After that we will send our team there to convince them, and at last we will implement the related laws which would be monetary fine to make it mandatory,” he said.
He hoped that if the submission of PSR is maintained in every enlisted services followed properly, it would be beneficial to increase the TIN holders and income tax return submission numbers.
He also said that there is an allegation that the tax net of the country is too small with a small amount of tax collection.
“If we can ensure the submission of the PSR it would also help us to put pressure on regular taxpayers also,” he said.
The NBR chairman said that with the increased tax net it would be helpful for his organisation to provide relief for the other regular taxpayers.
Currently the tax-to-GDP ratio is just 7.3 percent in the country, whereas it stands at 12 percent in India, 17.5 percent in Nepal, 12.3 percent in Bhutan, and 7.5 percent in Pakistan.
Only 5.2 percent of the population registered as taxpayers, compared to 23.08 percent in India.
At present the number of e-TIN registered taxpayers has surpassed 1 crore. Until April of last fiscal year, NBR received 41 lakhs tax returns from taxpayers, mainly individuals, which was 27 percent higher than that of the same period in fiscal year 2023-24.
At present income tax contributes about 33 percent of the total revenue collected by the National Board of Revenue. The average growth in income tax collection is more than 16 percent.
The services which require PSR are:
1. Applying for a loan exceeding Tk. 20 lakh from a bank or a financial institution.
2. Becoming a director or a sponsor shareholder of a company.
3. Obtaining or continuing an import registration certificate or export registration certificate
4. Obtaining or renewal of a trade license in the area of a city corporation or paurashava.
5. Obtaining registration of any cooperative society
6. Obtaining or renewing of license or enlistment as a surveyor of general insurance.
7. Obtaining registration, by a resident, of the deed of transfer, baynanama or power of attorney or selling of land, building or an apartment situated within a city corporation or a paurashava of a district headquarter or cantonment board, where the deed value exceeds Tk. 10 lakh
8. Obtaining or maintaining a credit card
9. Obtaining or continuing the membership of the professional body as a doctor, dentist, lawyer, chartered accountant, cost and management accountant, engineer, architect or surveyor or any other similar profession
10. Obtaining and retaining a license as a Nikah Registrar under the Muslim Marriages and Divorces (Registration) Act. 1974 (LII of 1974)
11. Obtaining or continuing the membership of any trade or professional body
12. Obtaining or renewal of a drug license, a fire license, an environment clearance certificate, a BSTI license, and a clearance
13. Obtaining or continuing commercial and industrial connection of gas in any area and obtaining or continuing residential connection of gas in the city corporation area.
14. Obtaining or continuing a survey certificate of any water vessel including launch, steamer, fishing trawler, cargo, coaster, dumb barge etc., plying for hire
15. Obtaining the permission or the renewal of permission for the manufacture of bricks by the Deputy Commissioner’s office in a district or Directorate of Environment, as the case may be
16. Obtaining the admission of a child or a dependent in an English medium school providing education under an international curriculum or English version of the national curriculum, situated in any city corporation, district headquarter or paurashava
17. Obtaining or continuing the connection of electricity in a city corporation or cantonment board.
18. Obtaining or continuing the agency or the distributorship of a company.
19. Obtaining or continuing a license for arms.
20. pening a letter of credit (LC) for the purpose of import.
21. Opening postal savings accounts of Tk. exceeding 5 lakhs.
22. Opening and continuing bank accounts of any sort with a credit balance exceeding Tk. 10 lakhs.
23. Purchasing savings instruments (Sanchayapatra) of Tk. exceeding 5 lakhs.
24. Participating in any election in upazila, paurashava, zilla parishad, city corporation or Jatiya Sangsad
25. Participating in a shared economic activity by providing motor vehicle, space, accommodation, or any other assets.
26. Receiving any payment which is an income of the payee classifiable under the head "Salaries" by any person employed in the management or administrative function or in any supervisory position in the production function.
27. Receiving salaries and allowances of public servants
28. Receiving any commission, fee, or another sum in relation to money transfer through mobile banking or other electronic means or in relation to the recharge of a mobile phone account.
29. Receiving any payment by a resident from a company on account of any advisory or consultancy service, catering service, event management service, supply of manpower or providing security service
30. Receiving any amount from the Government under the MPO if the amount of payment exceeds tk. 16,000 per month.
31. Registration or renewal of agency certificate of an insurance company.
32. Registration, change of ownership or renewal of fitness of a motor vehicle of any type excluding two and three-wheeler.
33. Releasing overseas grants to a non-government organization registered with NGO Affairs Bureau or to a Micro Credit Organization having a license with Micro Credit Regulatory Authority.
34. Selling of any goods or services by any digital platform to consumers in Bangladesh.
35. Applying for the membership of a club registered under the Companies Act 1994 and Societies Registration Act, 1860.
36. Submitting tender documents by a resident for the purpose of supply of goods, execution of a contract or rendering a service.
37. Receiving any kind of product or service from any company or firm.
38. Submitting a bill of entry for import into or export from Bangladesh.
39. Submitting plan for the construction of a building for the purpose of obtaining approval from Rajdhani Unnayan Kartripakkha (Rajuk), Chittagong Development Authority (CDA), Khulna Development Authority (KDA) and Rajshahi Development Authority (RDA) or other concerned authority in any city corporation or paurashava.
40. Registration of document writers, stamps, and court fee vendors.
41. Opening bank accounts of cooperatives, trusts, NGOs etc.
42. Renting and leasing houses in city corporation areas.
43. Products supply and providing services for certain entities.
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