Foreign Artistes Coming To B’desh
NBR to reject proposal to set fixed income tax
The National Board of Revenue has decided to reject a proposal of cultural affairs ministry for fixing tax of foreign artistes at the highest Tk 3.5 lakh on their income derived through performing in Bangladesh, officials said. They said that the revenue board on August 14 made the decision for ensuring income tax collection appropriately from the sector as most of the foreign artistes evade tax on their income in collaboration with the local organisers.
Earlier, cultural affairs minister Asaduzzaman Noor made a proposal to the revenue board for fixing the highest tax at Tk 3.5 lakh on income of foreign artistes who perform commercially in the country.
Officials of the revenue board said that they would send a summery to finance minister Abul Maal Abdul Muhith describing the methods of determining the income tax of foreigners in line with the Income Tax Ordinance-1984.
They will also mention in the summery on how the foreign performers evade income tax in connivance with local organisers, they said.
They said that according to the income tax ordinance, income tax was collected on income of particular person and it cannot be set at any fixed amount.
According to the income tax law, foreign performers will pay tax at the highest rate which is now 30 per cent of their remuneration that included other expenses for the artistes including accommodation, food, air fare and other transport costs.
Every year, many organisations and individuals organise cultural programmes where foreign film stars, singers, dancers, mostly from India, perform.
‘The government will be deprived of huge amount of revenue if the tax is fixed at a certain amount irrespective of the amount of remuneration as in most cases they are highly paid for participation in any programme,’ a senior tax official told New Age on Sunday.
Usually, organisers evade huge amount of tax through concealing the actual payment which depends on reputation and demand of the performers and show less payment in their declaration to the NBR, he said.
He said that many organisers also claimed that they would not pay any honorarium to foreign performers showing various reasons like terming the programme charitable.
If the tax is fixed at certain amount, the revenue collection from the sector will decline further, he added.
According to Income Tax Ordinance, programme organisers are responsible for deduction of the tax
while making payment to them.
Organisers of such programmes are supposed to take permission from the NBR through cultural affairs ministry giving assurance of tax payment, NBR officials said.
Through comprehensive investigation by the NBR, special branch of police and National Security Intelligence, the NBR found that organisers made false declaration to evade tax, they said.
-With New Age input
