• Thursday, Jan 30, 2020
  • Last Update : 01:30 am

AIT waived for project vehicles during registration

  • Published at 07:14 pm November 11th, 2015

The National Board of Revenue (NBR) has waived advance income tax from the registration and fitness renewal of the private vehicles purchased under different government projects.

The income tax policy wing of the tax authorities on Monday issued a clarification as the field level offices found complexities in collecting AIT from such vehicles and asked the revenue authority to clarify the matter.

Against such a backdrop, the NBR issued a clarification signed by its second secretary Mohammad Jashimuddin Ahmed.

According to the clarification, the vehicles purchased under different projects taken by any government department, directorate, or government run projects will not have to pay the AIT during registration and fitness renewal. The vehicles include motorcars, jeeps and microbuses.

According to the income tax rules, owners are to pay advance income tax on registration and fitness renewal of vehicles annually.

According to current tax structures, owners have to pay Tk15,000 for a motorcar or a jeep with 1500cc (cylinder capacity), whereas the rate is Tk30,000 for a motorcar and a jeep with 2000cc, Tk50,000 for a motorcar or a jeep with 2500cc, Tk75,000 for a motorcar and a jeep with 3000cc, Tk1lakh for a motorcar and a jeep with 3500cc and Tk1.25lakh for a private car and a jeeps above 3,500cc.

The AIT rate is flat Tk20,000 for registrations and fitness renewal of microbuses.

The Bangladesh Road Transport Authority (BRTA) collects the AIT for registration and renewal of fitness certificates on behalf of the revenue authority and later deposits it to the government exchequer.