NBR-BTRC tax talks fail to resolve row

The revenue board and the telecommunications regulator at a meeting failed Wednesday to reach a consensus on resolving a longstanding dispute stemming from non-payment of income tax by the latter.

Both the government agencies stuck to their positions, citing their respective laws to underpin their arguments.

The National Board of Revenue (NBR) sat with the top officials of Bangladesh Telecommunications Regulatory Commission (BTRC) to discuss the dispute pending for long four years.

However, NBR officials told the FE after the meeting that now the BTRC might take the matter up with the Prime Minister, who also holds the telecommunications portfolio, among some other vital ministries.

Officials pointed out that the Income Tax Ordinance and the Bangladesh Telecommunications Regulation Act have two contradictory provisions regarding tax payment by the BTRC.

Also, both of the laws have incorporated the provisions empowering the entities to supersede any other law in exercising their authority.

The officials said there is a need for amending one law for resolving the disputes.

The Finance Bill 2014 holds a provision regarding tax imposition on 29 state entities. However, all of the entities, bar BTRC, are paying taxes regularly at a 25 per cent rate.

Taxmen find it difficult to exempt BTRC by amending income-tax law as it has several relevant components.

BTRC sources said the commission has reservation on imposition of income tax as it has no income of its own.

doulot_akter@yahoo.com