The telecom regulator has requested the government to exempt it from tax arguing that it’s income is not enough to pay tax, said finance ministry sources.
It said although the Telecommunication Control Act 2001 provides such exemption to those government agencies lacking in taxable income, BTRC has been included in a list of 39 autonomous bodies requiring them to pay tax.
In a letter to Finance Secretary Mahbub Ahmed last week, Bangladesh Telecommunication Regulatory Commission (BTRC) made the request.
A copy of the letter signed by Senior Deputy Secretary of BTRC M Raihan Akter was also sent to National Board of Revenue Chairman Md Ghulam Hussain.
A circular issued in June in accordance with Income Tax Ordinance 1984 cited 39 bodies for payment of tax on their income.
“But the inclusion of BTRC in the list was not made lawfully,” the letter reads.
A senior official of BTRC said the commission has no income and only collects revenues on behalf of the government.
According to the official, the regulator runs activities under a limited government budget and cannot spend any money without the consent of government.
Last month, the government was considering to review the provision of tax collection from the income of Bangladesh Securities and Exchange Commission in response to its appeal seeking tax exemption.
Finance Minister AMA Muhith informed the NBR through a note on an appeal made by the BSEC that the issue of collecting tax from the income of regulatory bodies would have to be reviewed.
The circular issued on June 26 by the ministry’s internal resources division said all income by the government autonomous bodies is under income tax ordinance.
The government in the current fiscal budget imposed 25% tax on income of the autonomous organisations.
