The National Board of Revenue [NBR] is going to launch a massive hunt to identify the foreign nationals who are engaged in jobs in Bangladesh by evading taxes for a long time.
At present, the NBR has collected data of 12,000 foreigners. But the taxation authorities believe the actual number of foreign tax evaders is higher than the showed one. To spot the tax-dodgers, the NBR will start inspection in different companies from October 15, officials said.
Sources close to the Ministry of Finance said around 500,000 foreign nationals, mostly from India, Pakistan, Sri Lanka, China, Taiwan, South Korea and some European and African countries are working legally or illegally in Bangladesh. And a major portion of them do not pay taxes.
There are also widespread allegations that the employers avail the illegal way of money laundering to pay the salaries of the foreign workers. In this backdrop, Chairman of NBR M Nojibur Rahman recently in a meeting with the field level officials gave directives to check the financial crime.
On the first day, officials said, the NBR team will visit five multinational and international companies, including Chevron and Unilever. Later, they will go to other organizations under each tax zone where a large number of foreign employees are engaged.
When contacted, Member [Tax Legal & Enforcement] of NBR Sirajul Islam said, “There is a committee to bring all the foreign workers under the tax net. Though we had information about 12,000 foreign workers till the last fiscal year, around 10,000 have so far given their income tax statements. We think the number of foreign tax-dodgers is more than the given figure.”
It’s not the first time. The NBR took such efforts, to bring the foreign workers under tax net, for several times in the earlier years. It had also set up “income tax cell” in the country’s airports to check foreign workers during their entrance and exit. At the same time, the employers have to obtain NBR’s clearance to extend tenure of visa period or changing category of foreign workers.
Apart from it, the NBR had formed two task forces in Dhaka and Chittagong, comprising representatives from civil aviation, NSI, Special Branch, DGFI, Bangladesh Bank, Investment Board, Bangladesh Export Processing Zone, Home Ministry, NGO Bureau and Department of Immigration and Passport for the same.
But all the efforts went futile. Even, the coordinated effort by the NBR’s Central Intelligence Cell, Customs Intelligence and VAT Intelligence in this regard also failed for the reasons best known to them.
A senior NBR official told The New Nation requesting anonymity, “The foreign workers dodge taxes by not submitting their income tax returns. Sometimes, they show less salaries and allowances in their income tax returns. In some cases, the foreigners change their address after entering the country on arrival visa.”
In most cases, the foreigners are seen working in Bangladesh at different NGOs, hotels, restaurants, educational institutions, garments, hospitals and other industries. Under the Income Tax Ordinance, the foreigners have to pay 30 per cent tax on their income if they stay and work in the country for 90 days a year, according to the official.
