The National Board of Revenue (NBR) in Bangladesh has exempted companies and firms from paying an environmental surcharge on owning multiple cars, focusing instead on individual taxpayers. Introduced in fiscal year 2023-24 to curb air pollution, the surcharge applies to second and subsequent cars owned by individuals, with rates varying by engine capacity. For instance, owning a second car with an engine capacity between 1,500cc and 2,000cc incurs a Tk 50,000 surcharge, while a vehicle with a capacity of 3,500cc or higher faces a Tk 3.50 lakh surcharge. Despite maintaining these rates for FY25, the NBR clarified that only individual taxpayers are subject to this surcharge due to challenges in tracking corporate vehicle ownership. The tax must be paid during fitness certificate renewals, with additional conditions tied to income tax return submissions. Bangladesh currently has 61 lakh registered vehicles, with private cars, microbuses, and jeeps totaling 6.3 lakh units. In FY21, NBR tax collections from fitness certificates and registration renewals reached Tk 1,575 crore, a 48% increase from the previous year.
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