An income tax office of the National Board of Revenue is planning to conduct a special survey on hotels, restaurants, fast food shops and beauty parlours running business in the Dhaka city as the tax office suspects that more than half of the business establishments remain out of the income tax net.
The Dhaka Income Tax Zone-4, the field office dedicated to looking after the income tax files of the sectors, has sought approval of the revenue board for conducting the survey to detect tax evading hotels, restaurants, fast food shops and beauty parlours located in the city, officials said.
They said that the tax office had already prepared an action plan for conducting the survey.
According to the tax office’s primary estimation, some 7,000 establishments in the sectors are operating their business activities in the city but only around 40 per cent have tax files with the office.
Taxmen of the zone suspect that most of the remaining business entities of the sectors don’t have tax files while a few of the entities may maintain their tax files with other tax offices in the city.
A senior NBR official said that the responsibility of collecting income tax from the business houses under the sectors was given to the zone since its inception in 2011.
But the number of tax files is not increasing though the number of hotels, restaurants, fast food shops and beauty parlours has been on a rapid rise over the years, he said.
The revenue board or its field office has not so far taken specific steps including conducting survey to bring the new establishments under the tax net or check the tax payment status of the old shops, he added.
‘We suspect that more than half of the entities don’t pay income tax,’ said another senior official of the revenue board.
Some of the entities may pay income tax at other nearby income tax zones, he said.
The relevant tax office could not conduct any survey over the years due to a shortage of manpower, he added.
The revenue board has recently deployed at the Dhaka Income Tax Zone-4 sufficient number of income tax inspectors who are basically responsible for carrying out activities like survey.
In this context, the field office has decided to run the survey to get a clear picture of the tax payment status of the sectors and to bring tax evading businesses under the tax net, he said.
Mefhta Uddin Khan, income tax commissioner at the zone, on July 12 sought permission from the revenue board to conduct the survey.
Taxmen will start visiting the city’s hotels, restaurants, fast food shops and beauty parlours to check their income tax payment status after getting permission from the board, he told New Age last week.
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