NBR sends notice to Ctg chamber for not paying taxes

The Chattogram Chamber of Commerce and Industry (CCCI), a century-old trade body in Bangladesh, is yet to pay any income tax even though the organisation has been registering taxable income, according to tax officials.

Chattogram Tax Zone-1, a wing of the National Board of Revenue (NBR), has issued a notice to the CCCI for filing the income tax returns with 22 days. The notice was issued on October 12.

The letter said the CCCI has failed to file income tax returns for financial years 2020-21, 2021-22 and 2022-23. According to the rules, legal action will be taken if there is no response within 22 days of issuing the notice.

Gobinda Chandra Das, deputy tax commissioner, told The Daily Star that the CCCI earns several crore taka every year from renting space in their buildings and chamber house as well as trade fairs and fixed deposit receipts with banks.

"But they have not filed any income tax returns till now," he added.

He also said the organisation only just registered for a Taxpayer Identification Number (TIN) on January 16 last year.

"We don't know why they didn't register for TIN for so many years. Initially, we have been directed to submit accounts for three years. It will be realised gradually if there is income in earlier years also," Das added.

Tax officials said trade bodies were getting tax free benefits in various sectors till 2013. In 2013, the NBR collected income tax from some sectors but most remained tax free.

However, after the recent passing of the Income Tax Act-2023, there are instructions for payment of income tax from all sectors.

Additional Tax Commissioner Ashraful Islam told The Daily Star that the organization will be scrutinised after submitting their income tax returns and concerned tax circle officers will investigate as per rules.

Omar Hazzaz, president of the CCCI, said he does not know why the taxes were not paid earlier as he only recently took his position.

"However, we will pay the tax as per the law and file the return within the stipulated time," he added.

He also said that trade bodies should be kept tax-free to expand the country's economy.

"The trade bodies are serving their members with their income. The organisations undertake various activities to increase domestic and foreign investment using their source of income," Hazzaz added.