Govt Considers Minimum Tax Imposition Regardless of Income

The National Board of Revenue (NBR) faces a daunting task of collecting Tk 1.50 trillion in the last quarter of the fiscal year to meet its revised target, as current tax receipts show shortfalls. Until March 2024, the NBR had collected 63.36% of its revised annual target.

The National Board of Revenue (NBR) is considering reverting the top income tax bracket to its pre-Covid level of 30%, aiming to increase tax revenue by Tk10,000 crore. The highest individual income tax rate was reduced from 30% to 25% in FY21 to alleviate pandemic shocks.

The National Board of Revenue (NBR) clarified that certain motor vehicle owners, including government entities, diplomats, and educational institutions, are exempt from paying advance tax on registration or fitness renewal. This exemption extends to city corporations, development projects, and diplomatic missions, among others.

A regulation requiring an electronic lock and seal for transit and transshipment commodities passing via the ports of Chattogram and Mongla to India was released by the National Board of Revenue (NBR). Utilizing the GPS system, e-tracking would be carried out to guarantee the precision of imported products' transportation from ports to destinations.

The National Board of Revenue (NBR) is considering not extending tax exemptions for 27 information technology-enabled services beyond June, potentially subjecting companies offering these services to taxation starting the next fiscal year.

The World Bank's "Bangladesh Development Update" report highlights significant VAT policy flaws leading to a staggering Tk 1000 billion shortfall in revenue collection, exacerbated by compliance issues. In FY19, the VAT gap amounted to over Tk2 lakh crore, with policy choices accountable for Tk1.30 lakh crore of this gap. The report underscores the necessity to rectify these