The Bangladesh government is reportedly expanding its tax net; targeting hotels, restaurants, clinics, and diagnostic centres in an effort to boost revenue collection.
The new measures, which take effect next fiscal year, will require these businesses to show proof of submitting tax returns (PSR) when applying for new licences or renewing existing ones. Failure to comply could result in fines of up to BDT 50,000 (USD 580).
“The NBR wants to expand the tax net and bring in all potential taxpayers across the country. It also wants to reduce tax evasion,” said a senior official of the National Board of Revenue (NBR) on condition of anonymity to The Daily Star, a local English daily. “The economy has expanded fast. So many people who are involved in high-cost events and transactions are still out of the tax net.”
The move is expected to capture nearly 500,000 establishments currently operating outside the formal tax system.
