The business leaders have called for the suspension or withdrawal of the National Board of Revenue (NBR)'s recent decision regarding the on-site inspection of business premises and document seizures to counter tax evasion.

“In light of the provisions of the Bangladesh Investment Development Authority (BIDA) Act, 2016 regarding the freedom to conduct business and the protection of investment, as well as Articles 31 and 42 of the Constitution of the People's Republic of Bangladesh, which guarantee every citizen's legal rights and the rule of law, it is essential to reconsider the implementation of Section 147 of the Income Tax Act, 2023”, a joint letter from eight organisations of the business leaders said.

The letter was sent to the Chairman of National Board of Revenue (NBR) on Wednesday, and signed by  Mahmud Hasan Khan, President of BGMEA; Mohammad Hatem, President of BKMEA; Anwar-ul Alam Chowdhury (Parvez), President of Bangladesh Chamber of Industries (BCI); Moinul Islam, President of BCMEA; Taskin Ahmed, President of the Dhaka Chamber of Commerce and Industry (DCCI); Mohammad Amirul Haque, President of the Chittagong Chamber of Commerce and Industry (CCCI); Kamran T. Rahman, President of MCCI; and Mahbubur Rahman, President of ICC Bangladesh.

The letter states that on July 19, the NBR issued a press release to raise awareness about Section 147 of the Income Tax Act, 2023. However, the wording of the notice indicates that the practical implementation of this provision has not yet begun, and that most businesses in the country are still unfamiliar with it.

It urged NBR to resolve the issue in consultation with the business leaders.

On July 19, NBR sent a press release informing the stakeholders that under Section 147 of the Income Tax Act, 2023, tax officials may, when necessary, enter business or commercial premises to conduct on-site inspections. 

It also said they are authorized to examine and request accounting books, vouchers, bank statements, receipts, and other financial documents.

If necessary, officials may also inspect computers, cloud servers, and other digital records; access information by bypassing passwords or encryption; temporarily seize electronic devices; and collect copies of relevant documents.