B Mirror Report: The National Board of Revenue (NBR) has taken steps to ensure that owners of luxury vehicles in Bangladesh regularly file income tax returns, directing field-level tax officials to cross-check vehicle registration data with taxpayers’ records.

NBR Acting Chairman Ahsan Habib issued the directive at a recent meeting with tax commissioners. The meeting also focused on strengthening efforts to detect tax evasion, increasing surveillance of withholding tax agents and ensuring tax return submissions by savings certificate holders.

According to NBR data, Bangladesh has approximately 5,489 high-value or luxury vehicles. Of these, around 2,719 have been declared in their owners’ income tax records, while information on more than 1,339 vehicles has been found to be undisclosed in tax files.

The figures were compiled through an analysis of data from the NBR’s Central Intelligence Cell (CIC) and the Bangladesh Road Transport Authority (BRTA).

Luxury vehicles in the country typically have market values ranging from Tk 1 crore to Tk 10 crore or more. Their import duties and taxes are also substantial, depending on engine capacity.

The NBR aims to identify potential tax evasion by examining vehicle ownership records alongside declared income and assets. Officials believe that discrepancies between the value of luxury vehicles and owners’ declared financial positions could help uncover undisclosed income and suspicious sources of wealth.

The luxury vehicles operating in Bangladesh include Rolls-Royce, BMW, Mercedes-Benz, Audi, Land Rover, Range Rover, Porsche, Lexus, Cadillac, Maserati and Jaguar. A limited number of supercars, including Ferrari and Lamborghini, are also present in the country.

Under the new directive, investigation and inquiry teams in each tax zone will be made more active to identify tax evasion, discrepancies between income and assets, and individuals who fail to submit tax returns. The NBR will also strengthen monitoring of organisations responsible for withholding taxes at source.

Former NBR member (Tax Policy) Syed Aminul Karim said that combining and verifying such data would make it easier to identify eligible taxpayers who do not file returns, as well as detect inconsistencies in declared income and assets.

He added that these measures could help not only increase the number of tax return filers but also expand the country’s overall tax base.