Motor vehicles owned by government or local authorities, projects, diplomats, development partners, MPO-listed educational institutions, public universities and injured gazetted freedom fighters need not pay advance tax on registration or fitness renewal.
The income tax wing under the National Board of Revenue (NBR) has said this in a clarification sent to the Bangladesh Road Transport Authority (BRTA).
The NBR issued the clarification following confusions of the BRTA over collecting AIT starting from Tk 25,000 on motor vehicle registration or fitness renewal of the government-owned vehicles.
The clarification note, signed by second secretary (income tax policy) Bapon Chandra Das, said the following taxpayers needed not obtain certificates from the NBR for this exemption.
With the clarification, the BRTA will refrain from collecting AIT from motor vehicles owned by city corporation, district council, upazila council, municipality or union council.
Also, motor vehicles owned by any government or local government project, programme, diplomat, diplomatic mission in Bangladesh, the United Nations and its subsidiaries, development partner, government's monthly pay order (MPO)-listed educational institution will enjoy the exemption.
In another general order on 08 April 2024, the NBR has also defined 'charity purpose' and waived the mandatory provision to obtain tax exemption certificates for the tax year 2023-24.
© 2024 - All Rights with The Financial Express
