Planning to send your child to an English medium school? You’ll need to show your tax return

From fixed deposits to loans and utility connections, here's a look at the services that now require you to show proof of tax payment

Proof of income tax payment is now mandatory to obtain a host of services, including a utility connection in a city corporation area and to enrol a student in an English medium school.

Similarly, income tax return documents must now be submitted to banks in order to make or maintain fixed deposits of over Tk 1 million.

The same rule applies for taking out a bank loan exceeding Tk 2 million, or to purchase savings certificates worth more than Tk 1 million.

Bangladesh Bank has issued a circular to this effect, covering 24 types of banking services. The directive has already been sent to the top executives of all banks.

According to the circular, if someone fails to show proof of tax return submission while requesting any of these services, officials are not allowed to provide the service. If they do, disciplinary action may be taken against them.

The circular further states that individuals who serve as directors or sponsor shareholders of any organisation must also file and submit their tax returns.

Further, professionals such as doctors, dentists, lawyers, chartered accountants, cost and management accountants, chartered secretaries, tax consultants, actuaries, engineers, and surveyors must comply with the requirement if they wish to obtain or renew membership in any recognised professional body.

Filing tax returns has also been made compulsory for a range of other activities, including renewing import-export registration certificates, renewing trade or professional licences, registering land or flats, and getting gas or electricity connections.

Other areas now requiring proof of tax return submission include applying for a drug licence, environmental clearance, fire safety certificate, survey certificate for trawlers and other vessels, and even a firearm licence.

The rule also applies to admissions of children or dependents to English-medium schools in city corporation areas, district towns, or municipal areas.

The central bank said the decision was made in light of international agreements on avoiding double taxation.

The directive will also apply when opening a letter of credit (LC) for import purposes.