Check-posts help collect income tax from departing foreigners

Income tax check posts set up at air and land ports for scrutinising payment of tax by foreign nationals have started paying dividends, according to sources.  

The income tax wing under the National Board of Revenue (NBR) collected around Tk 60 million income taxes from 150 foreign nationals in July-August period from the check posts established at airports and Benapole land port of the country.

Officials are hopeful that the NBR would be able to collect Tk 10 billion in income tax in a year only from those check posts by strengthening its activity and placing those in visible places at the airports.

In July, 2016, the NBR set up four income tax check posts in Hazrat Shahjalal International Airport Dhaka, Shah Amanat International Airport, Chittagong, MAG Osmani International Airport Sylhet and Benapole land port.

Foreign nationals have to show tax clearance certificates in the income tax counters in the check posts.

Income tax officials collect tax instantly from the foreign nationals in the event of the latter`s failure to produce tax clearance certificates.

Employers of foreign workers will be required to pay tax if they fail to pay tax instantly at the check posts, said an income tax official. The official said the income tax check posts in the airports could perform much better if those could be set up at visible locations.

Many of the foreigners fail to notice the tax check posts at the airport as these are placed in a corner, he added.

The counters of the check posts should be located just beside the immigration desk, he added.

The NBR recently sent a letter to the Civil Aviation Authority to allocate a visible place for relocating the income tax check posts at the airport, he said.

An inter-ministerial steering committee earlier decided to open the counters to check and scrutinise tax clearance certificates of foreigners working in Bangladesh.

As per income tax ordinance, foreign workers are required to pay 30 per cent tax on their income. There is no tax-free limit for them.

The government took the step following widespread allegations over tax evasion by foreign workers in Bangladesh with support from their employers.