NBR to scrutinise TV channels\\\' tax payment

The National Board of Revenue (NBR) has moved to scrutinise tax payment by private and foreign television channels to ensure proper revenue collection from the sector.
Besides, payment procedures of advertisement bills and possibilities of money laundering through broadcasting local companies' advertisements in foreign channels will also be monitored, said the NBR chief.  
Central Intelligence Cell (CIC) of the revenue board will investigate advertisement bill payment procedures in the foreign media, he said. NBR Wednesday formed a coordination committee, comprising representatives from the revenue board and the private television channels, to resolve tax payment-related complexities with the channels.
The board formed the committee in a meeting with the TV channel owners, chaired by NBR Chairman Ghulam Hussain.
The committee is scheduled to submit its report by April 15.
In the programme, the channel owners proposed NBR to raise taxes on foreign TV channels to help the local media grow smoothly.
Association of Television Channel Owners (ATCO) members, including its president and NTV chairman Mosaddek Ali Falu, general secretary and head of news of Channel I Shykh Siraj, Maasranga Television Chairman Anjan Chowdhury, Channel 24 Managing Director A K Azad, and Channel 71 MD Mozammel Babu, attended the meeting.
Responding to queries of newsmen after the meeting, the NBR chief said the revenue board will scrutinise the tax payment status of foreign and private satellite TV channels.
"Foreign TV channels have to pay charge for airtime or frequency. VAT collection from frequencies will be scrutinized. VAT payment by cable operators will also be monitored," he added.
Currently, foreign TV channel distributors have to pay 25 per cent supplementary duty (SD) and 15 per cent VAT on their charges. Cable operators also have to pay 15 per cent VAT on their services.
The ATCO members said they are willing to pay VAT, but harassment should be stopped. NBR has sought documents of last 15 years and CDs of advertisement from inception of the channels, which have not been maintained properly.
They TV channel owners said television performers and artists pay their respective income tax on income. They termed VAT collection from honorarium of the performers 'illogical'.
The owners also expressed their concern over shifting their advertisement revenue to Indian channels due to their massive broadcasting in Bangladesh. They proposed to rein in those channels, as local TV channels are not allowed to be aired in India.
Responding to the ATCO members' suggestions, the NBR chairman said there are 24 private TV channels in the country, who are earning from advertisement.
"Taxmen are unaware of actual income of the channels to collect VAT," he said.
Both the TV channel owners and taxmen will have to reach a consensus over VAT payment. "The coordination committee has been formed to resolve the disputes in this regard," he added.
The ATCO members said there is no tax on broadcasting advertisement in the foreign satellite channels, which should be brought under tax-net. They also demanded cut in corporate tax rates in the next budget.
They said the government can earn Tk 36 billion through imposition of 15 per cent VAT on foreign channels.