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NBR mulling to make tax return mandatory for renting community centers

Published : Thursday, 23 May, 2024 at 12:00 AM  Count : 246

The National Board of Revenue (NBR), is considering making it mandatory to show proof of submission of tax return (PSR) for rental of community centres, weddings halls and such other places to further expand its  tax-net

Additionally, obtaining a new licence or renewing an existing one for hospitals, clinics, or diagnostic centres will also require showing proof of submission of tax return (PSR), according to a NBR source closely involved with the policy making.
 
Currently, proof of submission of an income tax return is mandatory for accessing 43 different services.
 
A senior NBR official seeking anonymity, said, "We are planning to expand tax base and as part of this, we plan to make PSR mandatory for venue rentals for weddings and other social events.

Moreover, PSR may also become mandatory for obtaining new licences or renewals for hospitals, clinics, and diagnostic centres, said the source.

"We have learned that a large number of people are spending significant amounts of money, but they don have a tax identification number (TIN), meaning they are not within the tax net. We want to bring them into the tax net," he added.
Experts have welcomed the move as positive, but industry insiders fear it could negatively impact business.

Dr Syed Md Aminul Karim, a former NBR member, said, "The government should bring these individuals or entities in the tax net. There is significant turnover in that sector, yet the government is not receiving proper tax revenues from them."

According to Bangladesh Community Centre, Convention Hall, and Catering Service Association, there are over 4,000 centres currently operating in the country. Besides, as per Directorate General of Health Services, there are 16,500 clinics, diagnostic centres, and hospitals in operation.

Shah Zakir Hossain, president of community centre association said, "The collection of PSR is the responsibility of NBR. Why do they want to put this responsibility on our shoulders?  If we are forced to comply with this, our relationship with customers will deteriorate, having a negative impact on our business," he added.

A senior official of the health ministry, seeking anonymity, said "TIN is currently checked during licence issuance. We, however, are ready to comply with any decision from any government authority."







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