BTRC-NBR row over tax payment persists

Doulot Akter Mala | Published: March 18, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

The revenue board and the telecom regulatory authority would sit today (Wednesday) to discuss way out of the long-standing complexities over payment of income tax by the latter.
High-ups of the board and the regulator would hold a meeting at the premises of the former to settle the disputes that have remained unresolved for the last four years. Â
The row between Bangladesh Telecommunications Regulatory Commission (BTRC) and the National Board of Revenue (NBR) regarding payment of income tax is still on although the Finance Bill-2014 had given a clear direction.
The NBR expects Tk 30 billion in income tax from the BTRC in the current Fiscal Year (FY) alone.
Officials said more than half a dozen letters have been exchanged between the tax authority and the telecom regulator since 2012, each of them making arguments in favour of their respective stances.
The Finance Bill 2014 for the FY 2014-15 has clearly stipulated provision on collection of tax at a reduced rate of 25 per cent from all state-owned enterprises and entities, including BTRC.
Tax officials argued that the local authorities have never been given exemptions in the income-tax law. However, some of them have been availing tax-free facility in accordance with relevant laws.
The officials found the practice unjust as the NBR income-tax wing holds the sole authority to decide on the tax waiver. Â
Earlier, the NBR had demanded Tk 25 billion as income tax for 2011-12 from the BTRC.
The collection of non-tax revenue from the telecom sector by the BTRC amounted to more than Tk 60 billion during the year.
In line with the recent directives of the finance minister last month, the NBR chairman sent a demy official (DO) letter on February 25 last.
Responding to the DO letter, the BTRC chairman said on March 11, 2015 that 'official discipline' would be breached if the revenue board collected income tax from BTRC.
The reply made it a point that the process would not increase revenue collection but only shift non-tax revenue from one head to another of the public exchequer.
The BTRC cited the Telecommunications Regulatory Act 2001 that incorporates a provision on tax-exemption facility for BTRC by bending any other law thereof.
However, the NBR, in its letter, referred to the Finance Bill 2011 that has added a new section, 184F, vesting in it the sole authority regarding 'tax exemption', bypassing all other laws on this point.
The Large Taxpayers Unit (LTU) under the NBR income-tax wing has already issued a TIN to the BTRC. It also requested the telecom regulator to submit its annual tax return for 2014-15.
However, income-tax officials found the other autonomous entities paying taxes regularly after the budget 2014-15, bar BTRC.
Despite several attempts, the BTRC chairman or the vice-chairman could not be reached over phone for their comments.
Tax officials said non-payment of taxes by any of the taxable entities is considered non-adherence to law for which taxmen can take legal steps.
Another senior BTRC official, preferring anonymity, said the body would stick to its guns over the point of enjoying income-tax exemption as it is paying non-tax revenue to the public exchequer.
Â Â Â doulot_akter@yahoo.com