Services will need proof of income tax payment

People will require to submit the proof of submission of their income tax returns in order to get more than 40 types of services, including loans and trade licence, as the National Board of Revenue looks to raise more taxes.

The proof could be an acknowledgement receipt of the return, a system-generated certificate containing the name and taxpayer's identification number (TIN) of the person, or a certificate issued by the office of the Deputy Commissioner of Taxes.

It will have to be furnished in the case of applying for a loan exceeding Tk 5 lakh from a bank or financial institution, becoming a director or a sponsor shareholder of a company, and obtaining or continuing an import or export registration certificate.

It will also be needed to secure or renew a trade licence in city corporations or municipalities and get the registration of a co-operative society.

The move comes as only 24 lakh out of 75 lakh TIN-holders in the country submit tax returns.

According to the Finance Bill 2022, the taxpayers will have to show the proof in order to obtain or maintain a credit card, the membership of the professional body as a doctor, dentist, lawyer, chartered accountant, cost and management accountant, engineer, and architect.

In order to open postal savings accounts exceeding Tk 5 lakh, maintain bank accounts with a credit balance exceeding Tk 10 lakh, and purchase savings instruments of Tk 5 lakh, the individual will have to show the proof.

It will be applicable for an employee who draws a basic monthly salary of Tk 16,000.

Similarly, obtaining or continuing commercial, industrial and residential connection of gas and getting the admission of a child or a dependent in an English medium school will require providing the proof of the tax return submission.