BRTA-NBR database comes to fruition


DOULOT AKTER MALA | Published: April 07, 2022 09:03:15 | Updated: April 07, 2022 17:11:12


BRTA-NBR database comes to fruition

The integration of the Bangladesh Road Transport Authority (BRTA) and the National Board of Revenue (NBR) database starts paying off following field-level taxmen's random access to it.

The database was streamlined last June to check tax evasion by well-off people having luxury cars.

Officials say long-standing allegations of tax evasion by vehicle owners will not persist any more.

Taxpayers having luxury cars are coming under the purview of the taxman as field-level officers across the country can cross-check details on the database.

In some cases, tax officials say, the NBR has found three dozens of cars against a single TIN which some vested quarters used to obtain car registration.

They have also detected that most TIN-holders having more than one vehicle concealed information to evade payment of surcharges and 50-percent additional tax on payment of advance income tax (AIT).

The NBR introduced this fiscal measure in the 2014-15 national budget to pay an additional tax for owning a second car.

That measure could not be enforced properly for lack of a searchable database.

A senior tax official says none of the vehicle owners will be able to evade tax after a thorough scrutiny of the integrated database.

"The BRTA has decided to issue new vehicle registration through verifying TIN data of the NBR from now on."

Anomalies in the numbers of TIN and vehicle registration holders will be fixed, the official cites.

All income tax offices have obtained user ID and password of the BRTA user manual to scrutinise the taxpayer's data, he said.

"It won't be possible for a car owner to evade payment of taxes," the official adds.

People having multiple cars or those who showed less purchase value of cars will also be detected.

It will not be possible to conceal in income-tax files the actual brand names of vehicles and their engine capacity.

According to tax officials, many car owners might have not paid their actual amounts of payable tax by citing less engine capacities.

As per section 68b of the Income Tax Ordinance-1984, a private car or jeep owner has to pay a minimum of Tk 15,000 in AIT for the vehicle up to 1500cc at the time of yearly fitness renewal or during registration.

The amount of tax is higher for any car above 1500cc.

Taxpayers can claim refund of any excess AIT paid or adjust it with their actual payable tax in tax returns.

Earlier, the NBR sought information from the BRTA on buyers of BMW, Volvo, Mercedes-Benz, Audi, Lexus, Jaguar, Hammer, Prado, Petrol Turbo Wagon, Discovery and Harrier to ascertain whether they mentioned these cars in tax returns and paid AIT accordingly.

As per the income tax law, an owner of a motorcar or a jeep with a 1500-2000cc engine capacity has to pay Tk 30,000 in advance tax a year.

The amount of AIT is Tk 50,000 for a car or jeep up to 2500cc, Tk 75,000 up to 3000cc, Tk 100,000 up to 3500cc and Tk 125,000 above 3500cc.

However, nine categories of car owners are exempted from AIT payment.

They include government or local government, government's project or programme, United Nations entities or foreign diplomats, foreign development partners, MPO-listed educational institutions, public universities and injured gazetted freedom fighters.

doulot_akter@yahoo.com

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