NBR plan for mandatory return submission likely to impact wedding, medical sector

The National Board of Revenue (NBR), as part of its tax net expansion, is considering making it mandatory to provide proof of submission of a tax return (PSR) when renting community centres or venues for weddings and other events.

Additionally, obtaining a new licence or renewing an existing one for hospitals, clinics, or diagnostic centres will also require the submission of a PSR, according to sources closely involved with the fiscal policy at the NBR.

Currently, proof of submission of an income tax return is mandatory for accessing 43 different services. 

A senior official at the NBR, seeking anonymity, said, "We are planning to expand the tax base, and as part of this initiative, we plan to make PSR mandatory for venue rentals for weddings and other social events. Additionally, PSR may also become mandatory for obtaining new licences or renewals for hospitals, clinics, and diagnostic centres."

"We have learned that a large number of people are spending significant amounts of money, but they don't have a tax identification number (TIN), meaning they are not within the tax net. We want to bring these affluent individuals 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, told TBS, "The government should bring these individuals and 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 the Bangladesh Community Centre, Convention Hall, and Catering Service Association, there are over 4,000 centres currently operating in the country. Besides, according to the Directorate General of Health Services, there are 16,500 clinics, diagnostic centres, and hospitals in operation.

Shah Zakir Hossain, president of the community centre association, told TBS, "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 our customers will deteriorate, which could have a negative impact on our business," he added.

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