The Bangladesh Economic Association (BEA) has proposed a 70 percent tax on all types of cigarettes and tobacco in the next budget. The association reckons that doing so will reduce smoking by about 66 percent, alongside generating revenue of Tk1,700 crore for state coffers. The proposal was submitted to the National Board of Revenue (NBR) during the pre-budget discussion held at the NBR Building on Sunday (February 18). The General Secretary of the BEA Professor Dr. Md. Aynul Islam presented the budget proposal. Vice President of the association Professor Hannana Begum was present. Read more: Govt cut VAT, duty on import of 4 essential items ahead of Ramadan According to the BEA's proposal, imposing a single supplementary duty of 70 percent on all types of cigarettes would increase the price of cigarettes by an average of 130 percent. Smoking will be reduced by 66 percent. About 70 lakh smokers will quit smoking, and about 71 lakh young people will stop habituating to smoking. Also, the additional tax revenue of the government will be earned at least Tk1700 crores, the proposal stated. Similarly, the BEA demanded to impose a tax of 70 percent on all types of tobacco products including smokeless tobacco such as jorda, gul, sadapata, etc. On the other hand, in the case of bidi, if the tax is imposed at the rate of Tk 4.90 on the retail price of every 25 shalak (piece) packet, the government will be able to collect additional revenue of Tk 800 crore. Read more: ICMAB delegation takes part in pre-budget discussion with NBR The BEA thinks with such a tax increase; revenue earning will be raised and it would help to revive the economy from the ongoing economic crisis. The BEA has a total of 27 new sources of revenue income. At this time, Prof Aynul said, as a method of gathering resources for the upcoming budget, no pressure can be applied on the general population, such as the poor, lower class, lower middle class, and middle class. Due to various reasons, this class of people is now in a severe economic crisis. It would be unfair at this moment to rely completely on them as in the past for tax collection. In that case, the imposition of additional income tax on these three groups – the super-rich, the rich, and the upper-middle class – can be considered, said Prof Aynul. Read more: PROGGA, ATMA for imposing specific taxes on tobacco products
A delegation of the Institute of Cost and Management Accountants of Bangladesh (ICMAB) headed by its President Professor Dr. Md Salim Uddin FCMA took part in a pre-budget discussion for the fiscal year 2024-25. Tk 14,305 crore deposited by agent bank outlets: Islami Bank CEO The programme was held at the conference hall of National Board of Revenue (NBR), Agargaon, Sher-e-Bangla Nagar, Dhaka on Sunday. The NBR Chairman and Senior Secretary Abu Hena Md. Rahmatul Muneem listened to the budget proposal of INMAB and exchanged views with the ICMAB delegation. Opportunities galore beckon for young entrepreneurs at Shark Tank Bangladesh Prof Salim presented an overview of suggestions that have an intense probability of increasing revenue income by imposing taxes on untouched fields on the revenue collection side. Whereas, Past President and Council Member of ICMAB Md. Abdur Rahman Khan FCMA presented it in detail. Among others, Treasurer Abdul Matin Patwary FCMA, Council Member Dr. Syed Abdulla Al Mamun FCMA, and Fellow Member HM Mainuddin Ahammed FCMA were present in the meeting from ICMAB. Make more information on banks, banking sector publicly available: Prof. Wahiduddin Mahmud Academicians and researchers from different institutions like ICAB, ICSB, and Bangladesh VAT Forum were present there, said a press release.
A delegation of the Association of Bankers Bangladesh Limited (ABB) led by its Chairman, Selim R. F. Hussain, has made a courtesy call on the Chairman of the National Board of Revenue and Senior Secretary, Internal Resources Division Abu Hena Md. Rahmatul Muneem. Brac Bank leads CMSME Cluster Financing Workshop in Laxmipur to fuel growth ABB leaders congratulated him on his reappointment. ABB Secretary General and Managing Director & CEO of Prime Bank PLC Hassan O. Rashid attended the meeting on Tuesday. BAT Bangladesh secures 'Top Employer' award for fifth time ABB leaders also discussed the tax regime in the banking sector with him and shared ABB's recommendations. 13 exhibitors from Bangladesh participate in Texworld Apparel Sourcing in France
The government has reduced VAT and duty on import of rice, edible oil, sugar, and dates ahead of holy month of Ramadan. The National Board of Revenue (NBR) issued four gazette notifications reducing the customs duties on these essential items from a minimum of 5 percent to a maximum of 47 percent. According to the notifications, rice import duty and tax have been reduced by 47.25 percent. The duty has been reduced from 62.50 percent to 15.25 percent. Out of this, supplementary duty has been cut by 20 percent. Bangladesh seeks IFAD support to boost wheat and edible oil production This tax reduction will be applicablein the import of boiled and non-boiled rice. However, prior to importing rice at subsidized rates, written approval must be taken from an official of minimum joint secretary rank of the Ministry of Food for each shipment. The tax reduction facility will be valid till May 15, 2024. On the other hand, the Value Added Tax on refined and crude (non-refined) soybean and palm oil has been reduced to 10 percent from 15 percent, which will be in force till April 15. Govt to import 12,500 MT of sugar from US For sugar import, the fixed duty has been reduced from Tk 1,500 to Tk 1,000 per metric ton. This facility will be valid till March 31 as per NBR notification. Besides, the import duty on date has been reduced from 58 percent to 43 percent.. It will remain in force till March 30. One crore TCB card holder families to get 5 kg rice at Tk 30 from July In the cabinet meeting held at the Prime Minister's office on January 29, Prime Minister Sheikh Hasina ordered reduction of duty on edible oil, sugar, dates, and rice on the occasion of Ramadan. On January 22, the Ministry of Commerce wrote to National Board of Revenue (NBR) to exempt tax on rice, edible oil, sugar, and dates.
BAT Bangladesh has been recognised as the top taxpayer for the 2022-2023 fiscal year by the Large Taxpayers Unit (LTU) of the National Board of Revenue (NBR). The company, contributing an amount of Tk 1,352 crore as Corporate Tax to the national exchequer, received recognition for being the highest taxpayer for the fiscal year 2022-23,said a press release. Bhumi-Pedia will be a reliable digital tool for landowners: Land Secretary On Wednesday, the LTU organised a ceremony at the NBR office, Agargaon, where the chief guest was Syed Mohammad Abu Daud, Member - Tax Administration and Human Resource Management, NBR. The function was presided over by Md. Iqbal Bahar, Tax Commissioner, LTU, Dhaka. BAT Bangladesh’s Company Secretary - Mr Azizur Rahman FCS, Area Head of Corporate Finance - Nashva Bint Hamid and Assistant Manager, Fiscal Affairs - Baizid Haque Joarder received the accolade on behalf of the company. ‘Upstream countries avoid downstream nations in South Asia for fairer water sharing’ After receiving the recognition as the top taxpayer, Md. Azizur Rahman said, “BAT Bangladesh fully complies with the laws and regulations of the Country, maintains complete transparency and pays taxes on time. In order to build a Smart Bangladesh, we strongly believe we can play a pivotal role as a significant partner in the country's development in the coming years." 9 more wells to be drilled in Bhola to expedite local gas production: Nasrul Hamid BAT Bangladesh contributed approximately Tk 31,507 crore in the forms of Value Added Tax (VAT), Supplementary duty (SD), Corporate Tax, Import Duty and other duties during the said fiscal year.
The Federation of Bangladesh Chamber of Commerce and Industry (FBCCI), the apex organization of businessmen, has requested the National Board of Revenue (NBR) to extend the deadline for submission of income tax returns. The federation in a letter to the NBR Chairman said that due to the late publication of income tax circulars in line with the new Income Tax Act 2023, the businessmen are not prepared to submit returns. Read: FBCCI urges political parties to avoid violence for economy's sake So, the deadline for filing returns need be extended until December 31 this year. The letter said due to the current political situation and upcoming parliamentary elections, many taxpayers may be able to file income tax returns by November 30. Some other business chambers have also requested the NBR to extend the tax return submission deadline. Read: FBCCI emphasises signing FTA between Bangladesh and Saudi Arabia The Dhaka Taxes Bar Association has demanded an extension of the return submission deadline by another two months.
The citizens of Bangladesh can register for Tax Identification Number (TIN) for paying income tax and various other purposes. They can also deactivate TIN when it is not required anymore. TIN can be deactivated upon fulfilling some terms. Let’s take a look into the process of deactivating TIN in Bangladesh. What is TIN? TIN is a unique alphanumeric code assigned to individuals and businesses by the National Board of Revenue (NBR). It serves as an essential identification and tracking system for tax purposes. The TIN helps the government maintain accurate records, monitor taxpayer compliance, and facilitate efficient tax collection. Whether you are an employee, self-employed professional, or business owner, obtaining a TIN is crucial for fulfilling your tax obligations. Read more: Universal Pension Probash Scheme: Registration Process for Expatriate Bangladeshis TIN Certificate Deactivation Terms Government Announced TIN Certificate Deactivation Terms The Bangladesh government has recently established six conditions for applying for the cancellation of TIN registration. i. Those who are not obligated to file tax returns. ii. Cessation of existence due to death, dissolution, extinction, or similar circumstances. iii. Permanent departure from Bangladesh with no earning activities in the country. iv. Duplicate or erroneous registration. v. Change in legal status. vi. Any other lawful reason. Read more: e-TIN: Online registration process in Bangladesh Who Can Deactivate TIN When a taxpayer's income falls below the taxable limit, their tax liability stops. There may be a risk that the life expectancy of the individual will fall below the minimum income tax liability in the near future. In that case, it is necessary to cancel the TIN certificate in advance. The proposed taxable income thresholds in Bangladesh for FY 2023-2024 are as follows: - Above BDT 350,000 per annum for individual taxpayers.- Above BDT 4,00,000 for females, and elderly persons aged 65 years or above.- Above BDT 475,000 in the case of a disabled person and third gender person.- Above BDT 5,00,000 in case of a gazetted freedom fighter wounded in war. Sometimes, despite having an income lower than this, one may need to present a TIN certificate for other purposes. In such cases, the holder can revoke the certificate if it is not required anymore. When a taxpayer dies, his or her TIN certificate can be canceled. After a taxpayer's death, his or her heirs are responsible for canceling the TIN. However, if the deceased had an active business, canceling the TIN requires canceling and renewing all business-related documents. In such cases, the heirs will not be able to cancel the deceased’s TIN number. If a Bangladeshi citizen works abroad with no taxable income in Bangladesh, he or she is not obligated to pay taxes. In such cases, the Bangladeshi expatriate can cancel his or her TIN registration. It is essential to remember that a person can only have one TIN certificate. Duplicating or having multiple TINs is not allowed. If any error occurs in the registered TIN due to mistakes by the registrar or tax officer, canceling the TIN might be necessary to correct the situation. Read more: Surokkha Universal Pension Scheme: Registration Process for Bangladeshi Self-Employed and Non-Institutionalized Workers How to Deactivate TIN in Bangladesh Necessary Documents To cancel your TIN certificate, you need to be aware of the following rules. You need to get the necessary documents ready in hand upfront: i. Your Current TIN certificate: Bring a printed copy of your current TIN certificate as proof. ii. National Identity Card: Carry your National Identity Card and a photocopy of it. iii. Acknowledgment of Zero Tax Return Filing: Provide a photocopy of the acknowledgment of receipt for filing zero tax returns for at least three consecutive financial years. Read more: Smart NID Card in Bangladesh: Online Application Process, Documents Needed, Fees Application Procedure for Canceling TIN Certificate Filing Zero Tax Returns for 3 Consecutive Years Since you need to show acknowledgment of zero returns filed for three consecutive financial years, it's important to prepare for the next three years. File zero returns for three consecutive years and keep the tax return receipts for later use. Applying to the Tax Circle Office When filing zero return for the third year, visit your tax circle office. Bring the receipts of returns for the last two years and complete an application form with the cess commissioner there. Clearly explain the reasons for canceling your TIN certificate in the application. Once you have written the application, submit it along with the receipts of the last three years’ returns and the necessary documents. Note that it is not mandatory for the TIN certificate owner to go to the Income Tax office for submitting the application. If he/she is unable to go, any person can appear at the Tax Circle Office on his/her behalf and submit the application instead. Tin Certificate Cancellation Fees There is no cost as announced by the government in the entire application procedures for the cancellation of the TIN certificate. That is, taxpayers can cancel their TIN certificate free of charge. Post-Application Proceedings for Canceling TIN Certificate After submitting your application, the Excise Commission officials at your tax circle will register your income tax file. They will thoroughly review the reasons mentioned in your application. If everything is in order, your TIN certificate will be finally canceled. Bottom Line TAX Identification Number (TIN) is required for many purposes. However, one can register for TIN and deactivate later, if it is not required in future. Following the TIN certificate deactivation terms, citizens of Bangladesh can apply to cancel their TIN certificates. So far, we have discussed how to deactivate TIN in Bangladesh. Hope it helps! Read more: Pragati Universal Pension Scheme: Registration Process for Bangladeshi Non-Government Employees
The Appellate Division of the Supreme Court today (July 23, 2023) ordered Nobel laureate Dr Muhammad Yunus to pay Tk 12 crore tax on donations to the National Bureau of Revenue (NBR) after dismissing a leave-to-appeal in this regard. A four-member bench of the Appellate Division, headed by Chief Justice Hasan Foez Siddique, passed the order after hearing the leave-to-appeal submitted by Dr Yunus against a High Court verdict. Attorney General AM Amin Uddin represented the state during the hearing, while Fida M Kamal and Barrister Abdullah Al Mamun stood for Dr Yunus. Earlier on June 21, a leave-to-appeal was filed against the High Court verdict. On July 9, the chamber court set July 17 for hearing in the Appellate Division. Read: HC asks Dr Yunus to pay over Tk 12 crore as donation tax On July 17, the Appellate Division adjourned till July 23 the hearing on the appeal against the High Court verdict. According to the petition, NBR served three separate notices claiming Tk 12,28,74,000 tax against Tk 61.57 crore donation during 2011-2012 fiscal year, Tk 1.60 crore tax against Tk 8.15 crore donation in FY 2012-2013, and Tk 1.50 crore tax against Tk 7 crore donation in FY 2013-2014 as per the Donation Tax-1990. Read: Trial against Dr Yunus to continue in labour court: Appellate Division Dr Yunus challenged the validity of NBR's notices and filed a case in the Appellate Tribunal. According to him, NBR cannot claim tax against donations as per law. On November 20, 2014, his application was rejected. Then in 2015, he filed three income tax reference cases in the High Court. After that, the High Court ruled on May 31 that the tax imposed by the NBR against the money that he had donated to three trusts was valid. After the verdict on May 31, Attorney General AM Amin Uddin told reporters that Dr Yunus had donated Tk 77 crore to three institutions. “The petitions were dismissed. Now the tax demanded by the NBR will have to be paid. The NBR had demanded more than Tk 15 crore. He (Dr Yunus) has already given around Tk 3 crore. Now the remaining Tk 12 crore will have to be paid in taxes.” Read more: HC stays labour law violation case against Dr Yunus for 6 months
The tax on property registration has been doubled under the Income Tax Act 2023 in all areas of the country including Dhaka, Chattogram, Narayanganj, and Gazipur. Whether transferring immovable property or land and flats in any area of Bangladesh, acquisition of ownership requires double taxation, as per the new Income Tax Act. Under the Income Tax Act 2023, the National Board of Revenue (NBR) has fixed the new tax in the source tax rules. After taking the final decision in this regard on June 26, the Act was published in the gazette on July 3. Also read: Tk 2,000 min tax for TIN holders won't be imposed; Finance Bill 2023 passed in parliament The owners of immovable property in Gulshan, Banani, Motijheel, Dilkusha, North South Road, Motijheel and their extended areas, and Mohakhali area of the capital have to pay the highest amount as registration tax. For buying property in these areas, a buyer has to multiply 8 percent tax per Katha or Tk 20 lakh, whicever is the maximum will be taken into consideration in taxing for registration of land, flats, or any other structures. This is considered as the highest property tax ever. According to Section-6 of the Income Tax Act 2023, entitled 'Collection of Tax on Transfer of Property', property registration, tax has been increased from 4 percent to 8 percent in various areas of Dhaka, Chattogram, and Narayanganj. Also read: JS passes bill to curb discretionary powers of income tax officers Besides, the tax has been increased from 3 percent to 6 percent in Gazipur, Munshiganj, Manikganj, Narsingdi and Dhaka, and Chattogram areas outside the City Corporation and municipal areas. Apart from this, the property tax under the jurisdiction of any municipality in Bangladesh has been increased from 2 percent to 4 percent and in other areas from 1 percent to 2 percent. Earlier on June 1, the finance minister made a proposal in this regard in his budget speech. And that proposal was included in the new rules. Also read: Building owners to get 10 percent holding tax rebate for rooftop gardening: LGRD Minister A senior official of NBR told UNB that to achieve the revenue collection target; it is natural to increase the tax rate. “In our jurisdiction, this sector has huge revenue generation opportunities. Moreover, the difference between the real value and deed value of almost all land or flats across the country including the capital is huge. Although, we have increased the tax rate on deed value,” the official said. Those who have the ability to buy immovable property in the capital, have the ability to pay that tax, he said. Also read: Income Tax Bill 2023 placed in Parliament
The High Court on Wednesday (May 31, 2023) asked Nobel Laureate Professor Dr Muhammad Yunus to pay over Tk 12 crore as donation tax to the National Board of Revenue (NBR). The HC bench of Justice Muhammad Khurshid Alam Sarkar and Justice Sardar Md Rashed Jahangir passed the order after rejecting the petition of Dr Yunus challenging the notice of NBR. Barrister Mostafizur Rahman stood for Dr Yunus while Attorney General AM Amin Uddin represented the state. Read more: ACC sues Dr Yunus, 12 others in case over misappropriation of about Tk 25 cr On May 23, Dr Yunus filed a petition challenging the notice issued by NBR claiming tax Tk 15 crore on donation. The HC fixed May 31 for hearing the petition. According to the petition, NBR served three separate notices claiming Tk 12,28,74,000 as tax against Tk 61.57 crore as donation during 2011-2012 fiscal year, Tk 1.60 crore tax against Tk 8.15 crore as donation in 2012-2013 FY and Tk 1.50 crore as tax against Tk 7 crore as donation in 2013-2014 FY as per the Donation Tax-1990. Read more: Yunus, Clooney address German Postcode Lottery Charity Gala in Germany