Owners of luxury cars under NBR scanners

Doulot Akter Mala | Published: November 10, 2018 22:55:36

Buyers of luxury cars have come under scanners of the tax authority as they might have concealed the actual brand names of vehicles and their prices in the income tax files.
Tax officials said many of the owners of luxury cars might have not paid their actual amounts of payable tax by citing less engine capacities.
It has also been alleged that some luxury car owners pay Advance Income Tax (AIT) at the time of registration and fitness renewal of their cars but do not submit tax returns.
They are not in the tax net despite having considerable amounts of annual income as they afford luxury cars.
As per Income Tax Ordinance-1984, Section 68B, a private car or jeep owner has to pay a minimum of Tk 15,000 in AIT for their vehicles up to 1500 CC at the time of fitness renewal every year or during registration. The amount of tax is higher for any car above 1500 CC.
Taxpayers can claim refund of any excess amount of AIT paid or adjust it with their actual payable tax in the tax return.
To track tax evaders, taxmen have moved to collect details of last six years about luxury car sellers and buyers from the Bangladesh Road Transport Authority (BRTA).
The tax authority recently sent a letter to the BRTA seeking the details.
Information about buyers of BMW, Volvo, Mercedes-benz, Audi, Lexus, Jaguar, Hammer, Prado, Petrol Turbo Wagon, Discovery, and Harrier has been sought to ascertain whether they mentioned these cars in their tax returns and paid AIT accordingly.
Taxmen would also see whether luxury car owners were submitting tax returns or not, said a senior tax official.
Private car owners are required to register their vehicles by submitting purchase receipts, copies of bills of entry and other information.
The taxmen have sought the information about luxury car registration during the period from July 01, 2012 to June 30, 2018.
As per tax authorities' requirement, the BRTA will have to furnish names and addresses of the buyers, their e-TINs (taxpayers'identification numbers), brand names and models, engine capacities, chasis numbers, purchase prices, names of the selling companies and their e-TINs.
Three of the income tax inspectors -- Abu Hena Md Zakir, Md Nazrul Islam and Md Mohiuddin Mamun -- will compile the information to be available from the BRTA.
As per the income tax law, an owner of a motorcar or a jeep with an engine capacity between 1500 and 2000 CC has to pay Tk 30,000 in advance tax in a year.
For a car or jeep up to 2500 CC the amount of AIT is Tk 50,000. Up to 3000 CC the amount is Tk 75,000, up to 3500 CC Tk 100,000 and above 3500 CC Tk 125,000.
If any person owns two cars or jeeps or microbuses, he has to pay 50 per cent higher AIT for the second one.
However, nine categories of car owners are exempted from payment of AIT. The categories include government or local government, government's project or programme, United Nations (UN) organisations or foreign diplomats, foreign development partners, Monthly Payment Order (MPO)-listed educational institutions, any public university and gazetted injured freedom fighters, etc.
doulot_akter@yahoo.com