Tax return submission

Mandatory for booking community centres, licensing med clinics


FE REPORT | Published: May 22, 2024 00:09:40


Mandatory for booking community centres, licensing med clinics


Tax-return-submission scope is getting wider with mandatory coverage of booking community centres and licensing medical clinics and diagnostic centres, under government's revenue-boosting measures.
People desiring to book community centre for wedding ceremony or other social events would have to submit their tax returns regularly from next fiscal year, officials said.
The National Board of Revenue (NBR) is set to make the proof of submission of tax returns (PSR) mandatory for those booking the centres for such high-cost events.
Also, obtaining and renewal of licences for hospitals, clinics and diagnostic centre would require furnishing PSR from FY 2025.
The income-tax authority would incorporate the two major untapped sectors into the tax law along with existing 43 services, officials said.
Currently, people have to submit PSR for leased land and flat registration, selling or leasing land worth more than Tk 1.0 million, opening bank account by cooperatives, trusts, non-government organisations, registration of document writers, stamps and court- fee vendors and so.
The number of tax-return submissions has been on a sharp rise after introduction of PSR.
There are some 10 million taxpayer identification number (TIN) holders in Bangladesh. Of them, some 4.6 million submit tax returns.
In February 2024, the Institute of Cost and Management Accountants of Bangladesh (ICMAB) proposed that the NBR implement Tk 50 tax per guest for social gatherings, such as weddings, hosting over 100 attendees outside one's residence from the next fiscal year.
"Introduction of a provision to impose a nominal advance tax per guest for booking a hotel, restaurant or community centre for hosting more than 100 guests for a wedding, bridal shower, birthday, wedding anniversary or any other social event other than business purpose could be brought under PSR," it proposed.
In the pre-budget meeting, ICMAB leaders said many individuals, despite lacking tax files, splurged considerable amounts on lavish events. And they proposed that pre-booking tax payments could serve as a revenue stream.
They suggested that bookings exceeding a limit, such as Tk 0.5 million to Tk 1.0 million, at community centres, could be brought under mandatory tax-return submission.

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