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 government aims to collect total revenue amounting to 11.2 percent of GDP by the end of the 2025-26 fiscal, according to the Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26) of the Finance Division under the Finance Ministry. It said that Bangladesh has consistently maintained an expansionary fiscal stance keeping a moderate budget deficit—usually around 5 percent of GDP—to foster economic growth, reduce poverty, and improve social outcomes. However, the tax-GDP ratio in Bangladesh is significantly lower than its peers and hence, the government has taken several initiatives to improve revenue collection. Yet, it said, the fast pace of GDP growth has made it challenging to increase the ratio. No tax fair, NBR will organise tax support service to smooth returns submission The measures that have been undertaken are expected to gradually improve revenue collection by increasing both the tax volume and the number of taxpayers. The Statement said that the foremost objectives of the public expenditure policy are to stimulate private investment through building infrastructures and improving the business climate, creating employment opportunities, supporting low-income population through social safety net programs, and reducing poverty through ensuring efficient redistribution of wealth and thus ensuring inclusive development. With the advent of the Covid-19 outbreak, the government started to focus on saving lives while keeping the living standards from falling. To do this, it mentioned, the Government emphasised on retaining jobs, providing income support, keeping supply chains active, reviving the rural economy, and ensuring food supply. Public pension is considered tax-free, notification soon: Finance Ministry For this, the government increased spending and implemented comprehensive recovery programs consisting of twenty-eight stimulus packages. The stimulus efforts worked well and as a result the economy returned to a high growth trajectory fast while other countries continued to struggle. However, the Russia-Ukraine war has again posed considerable risks and to mitigate the risks the Government has been pursuing a policy to rationalise public expenditure to stimulate economic growth by inducing domestic productivity growth. While managing the economy to maximise welfare and development, the government is expected to maintain a budget deficit of around 5 percent of GDP over the medium term. Historically, the size of public expenditure has been low relative to GDP in Bangladesh because of various limitations in the process of revenue collection and budget implementation. Land Development Tax Bill 2023 passed in JS To improve the situation, the government has undertaken certain strategies to increase public expenditure. The target of increasing public expenditure has been set to around 16.2 percent of GDP in FY 2025-26. Moreover, the government is pursuing the Public Financial Management (PFM) reforms process to achieve this target. To improve overall public service delivery, financial control of budget allocations, real-time monitoring of budget execution, and integration of recurrent and capital spending, implementation of the PFM Action Plan (2018-23) is ongoing, and revised PFM Reform Action Plan (2024-2028) has recently been formulated. Under the PFM reforms, pension automation and E-challan automation systems have been introduced with the help of iBAS++ software. This system continues to play a significant role in simplifying the budget management process. At the same time, all beneficiary programs are being brought under the Government to Person (G2P) payment system with the help of the iBAS++ software, which brings greater transparency in government expenditure management. In addition, all government allocations from government institutions as well as all semi-government, autonomous, and state-owned enterprises, are being brought under the Treasury Single Account (TSA) through the iBAS++ system in the medium term. How to Deactivate TIN in Bangladesh: A Comprehensive Guide
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 Revenue Department of the Indian Finance Ministry has imposed a 40 percent duty on onion exports to Bangladesh effective today (August 20, 2023), causing a hike in the price of the item mainly used as spice in local markets. An Indian gazette notification signed by Amreeta Titus, deputy secretary of the Revenue Department under the Finance Ministry, said the duty will remain effective till December 31 this year. India imposed the duty for the first time. Importers of Hili Land Port said earlier they paid no tax for importing onions from India. Due to the 40 percent duty, an extra Tk 10 per kg will have to be counted. Read: Indian onions start reaching Satkhira, leading to prices easing down On the other hand, each kg of onion is being sold at Tk 50 since this morning. Per kg of onion was being sold at Tk 39-47 just a day back. They said Sunday is a weekly holiday in India and import of onion won’t be possible until the newly imposed duty is not paid, urging the Bangladesh government to look for alternative markets to import the item from. Read: Indian onions start arriving through land ports as import resumes Indian exporters said onion prices are soaring in the country and the government has imposed the duty to discourage exports. They suspected that the prices may be hiked next month as substantial amounts of onions rotted due to excessive heat. Read more: Govt to allow onion import from Monday: Agriculture Ministry
Bangladesh Ambulance Owners Welfare Association has called for an indefinite nationwide strike to press home their six-point demand, including the withdrawal of taxes imposed by Bangladesh Road Transport Authority(BRTA). The strike of private ambulance owners will begin on Tuesday (July 25, 2023) if the demands are not met by today, said Gulam Mostafa, President of the Bangladesh Ambulance Owners Welfare Association on Monday. Not enough fuel allocation means no ambulance service at Faridpur General Hospital for 45 days Other demands include formation of a national policy on ambulances and the implementation of prime minister’s announced toll-free facility for ambulances. The ambulance owners also demanded parking facilities at all hospitals in the country, the facility to fill up fuel at filling stations without having to wait in lines while transporting a patient, and uninterrupted travel on roads. 4 dead, 3 injured as truck collides with ambulance in Gopalganj
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
Finance Bill 2023 was passed on Sunday (June 25, 2023), dropping the much-debated proposed provision for Tk 2,000 for every TIN holder during submission of their income tax return. Finance Minister AHM Mustafa Kamal moved the bill and it was passed by voice vote. The finance minister accepted some other minor proposals on the finance bill in section 2 and 2-Ka. The other amendment proposals were rejected by a voice vote. Read more: Several reform initiatives on the cards as govt moves to shore up economy The finance minister accepted an amendment scrapping specific duty on import of fuel oil by reinstating the previous tax on value as concerns grow over a significant hike in prices of petroleum products under the new tax measures. The specific duty on oil imports came into effect on June 1, 2023, under the ‘Provisional Collection of Taxes Act 1931 (Act No. XVI of 1931) in the Finance Bill placed before parliament on that day. Customs Duty, VAT and Advance Tax on the import of fuels have been reinstated in the Finance Act 2023, as those were scrapped in the bill. The proposed value-added tax (VAT) on the manufacturing of ballpoint pens has been cut to 5 percent from 15 percent. Read more: e-TIN: Online registration process in Bangladesh In the Finance Bill on June 1, the finance minister proposed Tk 2,000 as minimum tax on those who have no taxable income but need to submit tax returns for availing government services.
To address the present crisis on the economic front and ensure resilient, inclusive, and sustainable growth, the government of Bangladesh has adopted several reform initiatives to be implemented in the medium term (2025-26). The significant reform actions include: Revenue Mobilisation, Improved Expenditure Management, Monetary and External Sector Management, Financial Market Regulation and National Income Accounts, according to a budget document. The government has focused on reforms in tax policy and revenue administration. The plan is to mobilise additional tax revenue of about 1.7 percent of GDP by the end of FY 2025-26. Currently, the tax-to- GDP in the country is below ten percent. Read: Bangladesh’s economy has a dignified position now: PM Moreover, the government is focusing on untapped areas in the tax-revenue sector to enhance overall revenue while also emphasising non-tax revenue sources. The document states that fiscal management has become increasingly complex due to elevated and unpredictable inflation that has the potential to undermine the soundness of financial institutions and fiscal operations. The uncertainty surrounding prices, wages, and interest rates influence inflation through aggregate demand and expectations, which in turn posed challenges to fiscal planning and budgetary preparations. Read: 1st Circular Economy Summit in Dhaka on June 15 Besides rationalising the subsidies, there is a plan to bring down the cost of borrowing and bring efficiency in debt management, the document said. It said that the net National Savings Certificate (NSC) issuance is planned to be brought down to below 1⁄4 of total net domestic financing by FY26. The government plans to optimise cash management by expanding the coverage of the treasury single account (TSA) and the use of electronic funds transfer (EFT). Read: Govt to introduce circular economy to prevent plastic pollution: Minister Several reform measures have been implemented including the reduction of interest rates of saving certificates, the introduction of tiered interest rates, capping issuances, and increasing taxes on earned interest, all aimed at reducing the government's interest expenditure. In FY 2021-22, the contribution from national savings certificates accounted for 0.5 percent of GDP, a decrease from 1.2 percent in FY 2020-21. Efficient cash management is also a priority to save public funds by minimising interest expenditure. To achieve this, the government is strengthening and expanding the Treasury Single Account (TSA), which is expected to facilitate better cash management, reduce interest expenses, and improve commitment controls. Read more: Increased import costs putting pressure on economy in many ways: Minister In the Monetary and External Sector Management segment, to improve monetary operations, Bangladesh Bank will adopt an interest rate corridor system. Furthermore, to increase exchange rate flexibility, Bangladesh Bank will use market-determined exchange rates for official foreign exchange transactions on behalf of the government. To strengthen the external sector balance and improve monetary sector performance, Bangladesh Bank is going to implement several reform initiatives in the medium term. Read more: Budget not based on IMF conditions: Finance Minister There will be reform activities to unify the multiple exchange rates and bring more discipline to the foreign exchange market. Bangladesh Bank will reverse the temporary margin increases for opening letters of credit on nonessential imports. The official budget document says that “With a view to establishing a risk-based banking supervision system, Bangladesh Bank will complete the pilot risk-based supervision action plan.” Read more: CPD dismisses budget's projections on growth, inflation, revenue collection Also, it mentions that to improve governance and discipline in the financial market, the government will amend the Bank Companies Act and Finance Companies Act in line with best practices. The amended Bank Companies Act was accordingly passed last week. For better transparency, Bangladesh Bank will publish banks' distressed assets in the annual financial stability report. Bangladesh Bureau of Statistics has taken the initiative to publish quarterly GDP for having a clear view of national income accounts. Read more: Doing our best to keep economy going amid global recession: PM Hasina
The Foreign Investor’s Chamber of Commerce and Industry (FICCI) has expressed some concerns about the proposed national budget for the fiscal year 2023-2024 and draft Income Tax Act (ITA), 2023 which will have implications for the businesses and individuals in Bangladesh. FICCI expressed concern over perceived inadequacy of allocations for the health, agriculture and education sectors in the budget at a press briefing on Wednesday. The draft Income Tax Act (ITA), 2023 also required extensive reviews as some of the provisions in the law seems unreasonable as compared to the Income Tax Ordinance, 1984, they said. Also read:Proposed budget targets are challenging: FICCI “The progressive changes proposed by our government is applaudable, however, the growth of the businesses and individuals may slow down with the disclosure of some of the provisions which will raise more tax burden,” said FICCI President Ezaz Bijoy. “The imposed vat on locally manufactured mobile phones and increasing tax burden on loss making companies may aggravate the situation. We have some recommendations regarding solutions that may prevent the probable adverse situation. We hope that the recommendations are taken into consideration and allow the chamber to extend its continued support to the Government of Bangladesh and work together toward the development of the country by developing a tax-friendly environment,” he said. FICCI also expected gradual withdrawal of minimum tax provisions in the new law instead it has been increased significantly, particularly on carbonated beverage industry from 0.6% to 5% of Gross Receipts (8X increase). Also read: FICCI roundtable upholds importance of FDI to Vision 2041 Limiting cash transaction for corporates and organizations will put a cap on development as the country is yet to achieve total cashless transaction. Government should allow companies to spend a minimum percentage of its expenses rather than setting a definite number and set a target to achieve the 100% cashless goal in next 5 years, the press briefing also said. FICCI also proposed reduction of arbitrary power of officers in tax procedure and suggested implementation of comprehensive digitalization of the three wings of NBR and externally connected systems for seamless transaction. FICCI officials including Deepal Abeywickrema, Sr VP, Engr Abdur Rashid, member of Board of Directors, Sazzad Rahim Chowdhury, coordinator of Tarrif-Taxation and Regulatory Affairs Committee, were present at the press conference, among others. Also read: 50 years of Bangladesh: FICCI to unveil 3 growth drivers on FDI