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DNCC caught unaware of delinquent holdings!

KAMRUN NAHAR | Sunday, 30 August 2020



The Dhaka North City Corporation (DNCC) does not have any actual data and information about the number of holdings that do not pay holding tax, an official said.
They only have a list of 0.25-million holding tax payers.
It is assumed that there are more than double holdings under the corporation which are out of the tax net.
Last year, the DNCC set a target of earning Tk 4.40 billion holding tax. Finally, it ended up collecting Tk 3.0 billion only.
That's why, the tax collection target has been reduced this fiscal year, setting it at Tk 4.0 billion.
Talking to the FE, DNCC chief revenue officer Abdul Hamid Mia said they have decided to collect data on delinquent holdings and bring them under tax net.
A month-long combing operation to this effect is scheduled to start on September 01.
"We won't raise the holding tax rate. We'll go door to door to assess houses, establishments, newly-built houses, flats and other installations," said Mr Mia.
"We'll identify office and business centres running without trade licence, and bring the expired trade licence under a renewal process."
Last year, the DNCC could not achieve its revenue target with an outstanding revenue of Tk 1.40 billion.
There is a significant amount of dues because of the cases pending with the court.
If the DNCC collects holding tax and advertisement tax properly, Mr Mia said, it can be self-dependent.
Multiple public and private organisations, and individual taxpayers owe the DNCC a substantial amount of outstanding holding tax.
The DNCC has an outstanding tax of Tk 400 million to public organisations and Tk 250 million to the United Hospital.
Most ministries, Bashundhara Group, Jamuna Group, Monipur School, Uttara School, Padma Printers, Rahim Steel, BGMEA, National Housing Authority and Rajuk, to name but a few, are yet to pay tax.
Mr Hamid said the crackdown aims to identify the holdings that remain outside tax net.
The DNCC plans to expand the tax net by gaining financial self-sufficiency to deliver services door to door and development benefit to citizens without raising the present tax rate.
It will start the month-long combing drive from September 01 from zone-02 (Mirpur) and zone-05 (Karwanbazar).
The operation will be conducted in other zones gradually.
DNCC mayor Atiqul Islam held a meeting on the 'strategic action plan to make combing operation successful' at Nagar Bhaban on Thursday.
He said the DNCC must be self-reliant financially through boosting its revenue collection.
Through the drive, Mr Islam hoped, councillors' involvement will increase, transparency and accountability of revenue department be ensured and citizens be motivated to pay municipality tax.
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