Economic Reporter :
The Bangladesh Bank has asked the Authorised Dealer (AD) banks to ensure tax collection properly while their customers are making payments for importing goods or services using international credit cards.
The AD banks will have to ensure that such card-holders have duly received their goods or services from overseas, officials said.
Besides, the banks will have to inform their customers of being cautious, and not to purchase goods/services from any unreliable source to avert unexpected risk.
Credit cards are used for making payments against any permissible goods or services, including digital marketing advertisements through various online platforms, like – Google and Facebook, according to a clarification of the Bangladesh Bank issued on Thursday.
Besides, the cards can be used for making payments against other permissible goods or services, such as – fees for downloading application software packages, e-books, magazines, and subscription of newspapers etc from sources abroad, the clarification added.
When asked how the banks concerned can ensure proper tax collection from the cardholders, a BB senior official said the banks will have to closely monitor their customers in this connection.
“The issue needs to be discussed with stakeholders to properly ensure tax collection from the cardholders,” said Syed Mahbubur Rahman, Managing Director and Chief Executive Officer (CEO) of Mutual Trust Bank Limited.
The ADs will strictly observe Know Your Customers (KYC) and Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) standards, follow usual reporting routine to the BB, and ensure compliance of regulations concerning duties/taxes applicable against such transactions, the central bank said in a previous circular.
The Bangladesh Bank has asked the Authorised Dealer (AD) banks to ensure tax collection properly while their customers are making payments for importing goods or services using international credit cards.
The AD banks will have to ensure that such card-holders have duly received their goods or services from overseas, officials said.
Besides, the banks will have to inform their customers of being cautious, and not to purchase goods/services from any unreliable source to avert unexpected risk.
Credit cards are used for making payments against any permissible goods or services, including digital marketing advertisements through various online platforms, like – Google and Facebook, according to a clarification of the Bangladesh Bank issued on Thursday.
Besides, the cards can be used for making payments against other permissible goods or services, such as – fees for downloading application software packages, e-books, magazines, and subscription of newspapers etc from sources abroad, the clarification added.
When asked how the banks concerned can ensure proper tax collection from the cardholders, a BB senior official said the banks will have to closely monitor their customers in this connection.
“The issue needs to be discussed with stakeholders to properly ensure tax collection from the cardholders,” said Syed Mahbubur Rahman, Managing Director and Chief Executive Officer (CEO) of Mutual Trust Bank Limited.
The ADs will strictly observe Know Your Customers (KYC) and Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) standards, follow usual reporting routine to the BB, and ensure compliance of regulations concerning duties/taxes applicable against such transactions, the central bank said in a previous circular.
