FBCCI seeks one-month extension of tax return submission deadline

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), apex body of trade organisations, has petitioned the National Board of Revenue (NBR) to extend the deadline for submitting income tax returns by one month, to 31 December.

In a letter dated 19 November, FBCCI President Mahbubul Alam appealed to the NBR to extend the deadline, citing the impending national elections and the delayed release of income tax circulars aligned with the new Income Tax Act.

"Taxpayers have not had much time to prepare. Additionally, due to the ongoing political situation, many taxpayers will not be able to file their returns by 30 November," he said.

"Various trade organisations have also written to the FBCCI, requesting it to approach the NBR in this regard," he added.

Earlier, the Dhaka Taxes Bar Association had also sent a letter to the NBR, requesting an extension of the deadline.

As per existing provisions, income tax returns have to be filed by 30 November. However, almost every year in the past, the deadline has been extended due to various reasons. As a result, taxpayers also remain in a state of confusion.

In the new Income Tax Act, the provision for requesting additional time has been removed. This means that tax returns can now be submitted at any time throughout the year. However, if the return is filed after the 30 November deadline, taxpayers will not be eligible for the investment rebate, and the penalty and interest rates have been slightly increased compared to the past.

The objective was to encourage taxpayers to file their returns within a specified period. Surprisingly, applications for extending the time have already begun arriving this year.

According to NBR's field-level information, the return submission rate has increased slightly this year, but it is not expected.

A senior official of a tax office in the capital told The Business Standard, "Compared to the same period last year, there has been a slight increase in the filing of returns."

However, since this is a new law, ambiguity remains on the field level. Again, the current situation is not entirely conducive to easily submitting a tax return.

"The decision to extend the deadline will be logical. But even if the decision is taken, the board (NBR) may come and announce at the last moment," he hinted.

Currently, there are 95 lakh Tax Identification Number (TIN) holders in the country. Last year, some 35 lakh tax returns were submitted