DHAKA: After finding evidences of a total of Tk 50 crores tax evasion, National Board of Revenue (NBR) has frozen bank accounts of 27 travel agencies.
The shocking data was revealed following an investigation carried out by the Central Intelligence Cell (CIC) of the NBR. The authorities, however, decided to call for the necessary documents from the agencies on the matter.
Letters signed by the NBR chairman have already been sent to each agency asking them to pay the due tax and the fines, confirmed a reliable source in NBR.
The investigation found evidences of tax evasion on the incentives and commissions which the 27 travel agencies received from different airlines and global distribution system (GSD) companies.
Sources said, as the agencies denied paying taxes, the authorities concerned froze their bank accounts. Of them, the accounts of some 10 to 12 agencies remained frozen while accounts of the others have been opened after they paid the taxes and fines.
These agencies claimed that airlines agencies and the GSD companies gave sales ticket targets and a total of 7 percent was given as commission on the sales and the other services.
The travel agencies get incentives on ticket sales, hotel booking, transports and traveling related other services from the airlines and the GDS companies, NBR officials claimed.
According to the tax law, incentives and commissions are tax payable income. NBR imposes a 3 percent tax on incentives and commissions this year. Airlines agencies and GSD companies will keep the tax amount from the travel agencies during payments.
Meanwhile, Association of Travel Agent of Bangladesh (ATAB) sent a letter to NBR officering apology on the tax dodging. In the latter, ATAB claimed tax evasion as an unexpected incidence which occurred by mistake of the tax lawyers of the agency concerned.
Sources said, the ATAB leaders had recently met with Finance Minister Abul Mal Abdul Muhith on the matter where the minister assured them of resolving the problems.
ATAB president S.N. Manzur Murshed Mahbub said that the incidence took place for unexpected mistakes by the tax lawyers.
Incentives which are received have been expended for the passengers (customers) to stay in the competitive market, he added.
Mahabub said that the agencies pay 37.5 percent corporate tax and it would be very difficult, if 50 percent fine is added to the tax.
The ATAB boss sought NBR’s cooperation to save the sector.
A total of 2,500 travel agencies are operating business under ATAB across the country. As evidences of tax evasion have been found against 27 agencies, the CIC is investigating into the files of the other agencies.
BDST: 1133 HRS, OCT 9, 2014
