Land, flat sellers, buyers to require TINs in urban areas

Finance bill proposes TIN mandatory for all types of electricity connection

Staff Correspondent | Published: 00:20, Jun 16,2019

 
 

A file photo shows high-rise apartment blocks in Dhaka. Both the buyers and the sellers of land, building and apartment worth above Tk 1 lakh and located in city corporations, cantonment board and the municipality (paurashava) in a district headquarters will have to obtain taxpayer identification numbers, according to the proposed Finance Bill-2019 placed before parliament on Thursday. — New Age photo

Both the buyers and the sellers of land, building and apartment worth above Tk 1 lakh and located in city corporations, cantonment board and the municipality (paurashava) in a district headquarters will have to obtain taxpayer identification numbers, according to the proposed Finance Bill-2019 placed before parliament on Thursday.

Twelve-digit electronic taxpayer identification numbers (E-TINs) of the buyers and the sellers will also have to be included in the deed document relating to the transfer of such property during registration, it said.

Finance minister AHM Mustafa Kamal has proposed an amendment to the Income Tax Ordinance-1984 in the bill in this connection.

Officials of the National Board of Revenue said that this measure would widen the tax net significantly.

Using the provision, tax officials will be able to trace the affluent people evading income tax, they said.

According to the finance bill, private universities, private hospitals, clinics, diagnostic centres, firms and association of persons will have to obtain TINs and file returns of tax deducted or collected at source.

The returns will have to contain detailed information and documents related to deduction.

Tax on renewal of trade licences has also been proposed to increase significantly.

According to the proposal, traders in Dhaka and Chattogram city corporations will have to pay Tk 3,000 instead of Tk 500 for renewal of trade licence.

The tax has been set at Tk 2,000 raising from Tk 300 for traders in any other city corporations, Tk 1,000 instead of Tk 300 for traders in any paurashava at any district headquarters and Tk 500 increasing from Tk 100 for traders in any other paurashava in the country. The move will increase the cost of holding trade licences.

The finance bill also proposed to impose 5 per cent tax at source on house rent, hotel room rent, convention hall, conference centre, community centre, restaurant and other space rent. Tenants like companies and other organisations specified in the income tax law will deduct the tax while payment of rent to house property owners.

The provision will not be applicable to individual tenants. Tax at source at the rate of 5 per cent will also be applicable to rent or use of any vacant land or plant or machinery.

The bill proposed to make e-TIN mandatory for obtaining or maintaining the electricity connection by all types of people, including house property owners and businesspeople, in city corporation, cantonment board and paurashava areas in the country.

Previously, e-TIN was mandatory only for electricity connection for commercial purpose.

The finance minister also offered exemption from multilayer taxation on the distribution of taxed dividend to non-resident or foreign companies to encourage more foreign investment.

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