The government has taken initiative to increase collection of income tax from indenting business, said official sources.
Finance Minister AMA Muhith recently sent letters to the Commerce Ministry and the National Board of Revenue asking for necessary steps in this regard.
According to him, given the expansion of indenting business in Bangladesh, more revenue was supposed to come from the sector.
He therefore asked the commerce ministry and the NBR to collect information from Bangladesh Bank.
According to him, the central bank could easily provide information on indenting business firms as they do business through local commercial banks.
Besides, the data on the firms’ foreign clients providing financial assistance and on those participating in international tenders in abroad are available in Bangladesh Bank, the letters said.
But Bangladesh indenting Agents Association (BIAA) opposed the move and demanded reduction from the existing 30% taxes including VAT and income tax.
A three-member delegation of BIAA on 18th this month called on finance minister.
The delegation talked against tax imposition on their incomes from indenting business. They said such tax imposition is hurting their business.
In fiscal year 2009-2010, the NBR imposed 15% value added tax on indenting business.
“Indenting firms are earning foreign currencies through providing assistance to foreign investors in setting up industrial or business plants. The earnings come as commission.
But the imposition of 15% Vat is hurting our business,” Obidur Rahman, former chairman of BIAA, told the Dhaka Tribune Thursday.
He also demanded change of the NBR definition of indenting business as fo eign currencies are coming to the country through the business.