NBR focuses on jobholders as it amends income tax laws

The National Board of Revenue has made some amendments to income tax laws in an effort to raise revenue from jobholders.

Abdur Rahim Badalbdnews24.com
Published : 7 August 2016, 05:46 AM
Updated : 7 August 2016, 06:55 AM

Filing tax returns has been made mandatory for those who earn a basic monthly salary of Tk 16,000 or more at all government, semi-government and autonomous bodies.

Service-holders of all private entities, including in banks, insurance, financial institutions and NGOs will have to file returns even if they fall under the tax-free income limit.

The NBR has issued notifications on Saturday in national dailies about the amendments.

Emphasising income tax at source from salaries, Finance Minister AMA Muhith had said in his budget speech that revenue collection from this sector in Bangladesh amount only 4 to 5 percent , but in developed nations it’s over 30 percent.

The amendments follow that argument," said NBR Chairman Najibur Rahman. “They are aimed at raising revenue from jobholders. We hope it will yield good results.” 

 The amendments made in the income tax law are

>>Obtaining E-TIN is mandatory for those who get paid in tenth grade or above in pay-scales introduced in 2015.

>>E-TIN mandatory for teachers in institutions under the government’s monthly pay order (MPO) scheme, who get paid Tk 16,000 or above.

>> Those in managerial and administrative posts as well as production supervisors must have E-TIN (electronic tax identification number).

>> Organisation will not be able to show salaries of employees without E-TINs as approved expenditure.

>> Organisations’ salary statement, which they submit to the authorities, must include employees’ TIN and other details.  

Individuals with an annual income of over Tk 250,000 have to pay taxes.

For female taxpayers and senior citizens aged over 65 years, the threshold is Tk 300,000.

The ceiling for people with disability is Tk 375,000 and for freedom fighters Tk 425,000.

The FY 2016-17 budget has set a revenue collection target of Tk 2.43 trillion.

Out of it, the government estimates that Tk 2.03 trillion will come in taxes through the NBR while Tk 719.40 billion from income tax.