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Six Additional Services Now Require Proof of Tax Return

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Economic Tag: Vat & Tax

The National Board of Revenue (NBR) in Bangladesh plans to broaden tax coverage by introducing mandatory proof of submission of return (PSR) for six new sectors or services. The provision will be included in the new income tax law or the upcoming finance bill. Currently, the PSR requirement applies to 38 services. Under the proposal, suppliers and service providers offering goods or services to specific entities, including the government and authorized corporations, will need to provide proof of return. House owners leasing properties to these entities within city corporation areas will also be required to comply.

The provisions will extend to document writers, stamps and court fee vendors, as well as the opening of bank accounts for societies, cooperatives, trusts, funds, NGOs, and microcredit institutions. Proof of return may also become mandatory for the sale and lease of land exceeding Tk10 lakh in municipality areas. While concerns have been raised about including individuals without taxable income, the NBR aims to improve tax compliance and collection. These initiatives are expected to expand tax coverage, including individuals involved in land sales and co-operative societies, contributing to enhanced tax compliance in Bangladesh.

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