The National Board of Revenue (NBR) has taken a move to bring prosecution against some taxpayers on case-to-case basis for their failure to submit tax returns despite having taxable incomes.
The move came after the taxmen have found that 50 per cent of the Taxpayers Identification Number (TIN) holders don't submit their tax returns as per income tax law.
Although income tax ordinance-1984 has the provision of filing cases against the taxpayers along with other penal measures for non-submission of returns, the NBR hardly takes such harsh action.
As part of the move, the board in its recent meeting approved a proposal made by Tax zone-7, circle-140 to bring prosecution against one taxpayer.
The action will be taken against him under section 164 C of the Income Tax Ordinance-1984.
After getting approval, officials said, the tax zone has already filed a case against the taxpayer with the Metropolitan Senior Special Judge's Court, Dhaka.
Earlier, the deputy commissioner of taxes (DCT) of tax zone-7 sought approval from the board for filing the case.
The taxpayer did not respond to several notices sent by tax officials to submit tax return, he said, adding that even tax officials imposed penalty for non-submission of tax return.
Officials said recent steps by the NBR will help increase the number of tax returns and minimise the gap between TIN holders and tax return filers.
There are some 4.0 million TIN holders in Bangladesh. Of them, 2.0 million submit income tax returns annually.
According to income tax law, it is not mandatory for all the TIN holders to submit tax returns. The NBR made tax return submission mandatory for some 25 categories of taxpayers.
However, tax officials said, more than 90 per cent of TIN holders should submit tax returns according to the categories.
Many taxpayers obtain TINs for availing different types of services including enjoying lower tax rate on interest amount of bank deposits.
