Tax certificate must for brick field licence, DoE clearance

September 30, 2014

Brick manufacturers will have to submit income tax payment certificates for renewing licences and taking environmental clearance certificates, officials of the National Board of Revenue said. The revenue board made the provision of submitting the certificates containing 12-digit online taxpayer identification number for getting the services from the current fiscal year, they said.Brick manufacturers will also have to pay an increased amount of advance tax for receiving fresh licences or renewing the existing licences, according to the Income Tax Ordinance-1984.
The income tax wing of the NBR on Monday issued two separate instructions signed by its first secretary Abdur Rahman Khan to the Department of Environment and district commissioners for ensuring the provisions.
The step is taken to ensure revenue collection from the sector, NBR officials said adding that as many brick field owners had been evading tax for years in absence of any effective mechanism for collecting tax.
From now on, brick manufacturers will not be able to evade tax if the district administration and DoE properly execute the provisions of the ordinance, they said.
According to the instructions, brick kilns owners will have to pay Tk 45,000 as advance income tax for one-section brick field, Tk 70,000 for one-and-a-half-section brick field, Tk 90,000 for two-section brick filed and Tk 1.50 lakh for automated brick field.
Earlier, the amount of AIT was Tk 30,000 for one-section brick field, Tk 45,000 for two-section brick field and Tk 60,000 for three-section brick field, officials said.
The section indicates the production capacity, which is defined in Seasonal Brick Field VAT Rules-2004, of any brick field, they said.
According to the DoE, there are about 6,417 brickfields in the country.
But NBR officials quoting different sources including environmentalists said that the number of brick kilns in the country would be around 10,000.
In the letter to deputy commissioners of all 64 districts and the DoE, the revenue board instructed them for taking necessary steps so that brick kiln owners could meet the requirements of the income tax law.
The provisions became effective from July 1, 2014, it said.
According to the country’s law, the district administration provides permission and renews the permission for setting up brick field while the DoE issues environmental clearance certificate.
According to the article 52 (F) of the income tax ordinance, any person responsible for issuing any permission or renewal of permission for the manufacture of bricks shall, at the time of issuing such permission or renewal of permission, collect tax from such manufacturer at the time of issuance of such permission or renewal at the prescribed rate.

-Input from New Age

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