Proposal to mandate tax returns for property services

Accountants have proposed that the revenue authorities mandate tax returns for availing property related services such as buying, selling and re-registering cars or lands, and for paying different charges to city corporations.

Besides, they called for an integrated and digitalised taxation system connecting the vehicle registration offices, land offices and urban service providers to check tax evasion.        

"The main target of the proposal is to help boost the government's revenue earning," Md Shahadat Hossain, President of the Institute of Chartered Accountants of Bangladesh (ICAB), told the revenue board Wednesday at a pre-budget parley.  

The institute president said they also want to lend support to the revenue authorities for better revenue management, widening the tax net and correcting the flaws in tax laws.      

Emphasising total digitalisation of return submissions, the ICAB said the automation will ensure efficient and hassle-free taxation.

Some 24 lakh taxpayers filed tax returns in the recent past year, though the National Board of Revenue (NBR) estimated there were 65 lakh TIN holders in Bangladesh. There have been talks since a large number of the TIN holders did not submit the details of their income and spending to the NBR.

Currently, buying and selling properties require the tax identification number (TIN) of both the parties. But the TIN mandate failed to boost revenue earning up to the desired level.

Meanwhile, NBR's integration initiative connecting different public offices to widen the tax net also failed to clock the anticipated progress. Even the revenue board does not have its income tax wing, value-added tax wing and customs offices under an integrated system.

At the meeting, Snehasis Mahmud and Company partner Snehasis Mahmud asked the revenue board for easing services by the tax and VAT wings, and customs offices.       

Muzaffar Ahmed, a representative of the Institute of Chartered Secretaries of Bangladesh (ICSB), stressed on checking long-term bank loans, saying, "The banking sector cannot go on with this as there will be major bumps ahead". He argued a huge chunk of long-term loans are contributing to the growing non-performing loans.        

"We will make an attempt to check long-term loans this year. The effort might not bring any result in the end, but there could be talks to this regard at least," replied NBR Chairman Abu Hena Md Rahmatul Muneem.

Rahmatul Muneem shed light on whether the capital market and investment options are now ready if banks want to plough in the money meant for long-term lending.   

Realtors want money whitening scope to continue

On Wednesday afternoon, Real Estate and Housing Association of Bangladesh (REHAB) and different construction sector related bodies presented their proposals to the revenue authority.

During the talks, REHAB demanded the NBR to allow black money investment in housing without any question for the next 10 years.

REHAB President Alamgir Shamsul Alamin said if the money whitening scope is repealed, money laundering to foreign countries may rise further in future.

The realtors also demanded existing 10%-12.5% taxation on plot and apartment registration to be reduced to 7%. They also advocated reducing the income tax for housing entrepreneurs.

Bangladesh Steel Manufacturers Association, Bangladesh Cement Manufacturers Association, Bangladesh Tiles Dealers and Importers Association, Steel Building Manufacturers Association of Bangladesh and representatives of several construction sectors were also present at the meeting.