Collection of AIT from private cars goes up substantially
Sunday, 28 November 2010
Doulot Akter Mala
The advance income tax (AIT) paid by private car owners during the first quarter of the current fiscal was five times more than that paid by owners of commercial vehicles, thanks to upward revision of AIT for privately owned cars.
Private car owners paid Tk 290 million in AIT in the first quarter while owners of commercial vehicles paid Tk 60 million tax at the time of registration and fitness renewal.
A total of 39,400 private car paid AIT while renewing their fitness certificates or receiving registration numbers from the Bangladesh Road Transport Authority (BRTA) offices across the country during the July-September period against 27,185 cars in the corresponding period of the last fiscal.
In the same period of the current fiscal, 19127 commercial vehicles got registration or fitness certificates, according to the number of pay orders received in the income tax booths at the BRTA offices.
The National Board of Revenue (NBR) has increased the rate of AIT to Tk 8,000 from Tk 3, 000 for private cars up to 1500 cc capacity for the current fiscal. But tax for commercial vehicles starts from Tk 3000.
The revenue board slapped the advance income tax (AIT) in 2009 following detection of large-scale tax evasion by owners of private cars.
"The number of car owners is much higher than that of income taxpayers. It is not possible for anyone to afford a car having annual income less than Tk 165,000 which is the tax-free limit," said a senior income tax official.
The government has paid more attention to collection of taxes from private car owners than owners of commercial vehicles, he said.
The NBR has found 35 per cent of the tax identification numbers (TINs) used during car registration and fitness renewal as fake.
The tax officials claimed that they had been able to ensure proper tax collection from private car owners after imposition of AIT.
The advance income tax (AIT) paid by private car owners during the first quarter of the current fiscal was five times more than that paid by owners of commercial vehicles, thanks to upward revision of AIT for privately owned cars.
Private car owners paid Tk 290 million in AIT in the first quarter while owners of commercial vehicles paid Tk 60 million tax at the time of registration and fitness renewal.
A total of 39,400 private car paid AIT while renewing their fitness certificates or receiving registration numbers from the Bangladesh Road Transport Authority (BRTA) offices across the country during the July-September period against 27,185 cars in the corresponding period of the last fiscal.
In the same period of the current fiscal, 19127 commercial vehicles got registration or fitness certificates, according to the number of pay orders received in the income tax booths at the BRTA offices.
The National Board of Revenue (NBR) has increased the rate of AIT to Tk 8,000 from Tk 3, 000 for private cars up to 1500 cc capacity for the current fiscal. But tax for commercial vehicles starts from Tk 3000.
The revenue board slapped the advance income tax (AIT) in 2009 following detection of large-scale tax evasion by owners of private cars.
"The number of car owners is much higher than that of income taxpayers. It is not possible for anyone to afford a car having annual income less than Tk 165,000 which is the tax-free limit," said a senior income tax official.
The government has paid more attention to collection of taxes from private car owners than owners of commercial vehicles, he said.
The NBR has found 35 per cent of the tax identification numbers (TINs) used during car registration and fitness renewal as fake.
The tax officials claimed that they had been able to ensure proper tax collection from private car owners after imposition of AIT.