NBR to hunt tax-dodging illegal foreign workers

The National Board of Revenue is going to launch a drive against foreign nationals who are working in Bangladesh without work permits and dodging income tax.

Foreigners are supposed to pay 30 percent tax on their yearly incomes.

Last week, the tax authority sought the lists of foreign nationals working in the country from the Board of Investment (BoI), NGO Affairs Bureau, Bangladesh Export Processing Zones Authority (BEPZA) and the Criminal Investigation Department of police.

“This is an urgent matter,” said the letter issued by the NBR to the agencies.

The tax administration's move comes after it included a provision in the Finance Act, stipulating that anyone who appoints foreigners without approval from the BoI or other related authorities will face penalty of up to Tk 5 lakh or a maximum three years' imprisonment or both.

After incorporating the provision, the NBR asked entrepreneurs not to hire unauthorised foreigners.

Taxmen said many foreigners come to Bangladesh on tourist or business visa, but they take jobs without approval from the agencies concerned. As a result, the state is deprived of tax.

There is no actual data on foreigners residing in Bangladesh, but their numbers may be nearly two lakh, according to an estimate of the Special Branch of police. Many of them are employed in the garment industry and the services sector.

Indians, Sri Lankans, Chinese, Pakistanis, Koreans and Filipinos make up the majority of the numbers.

The BoI, BEPZA and NGO Affairs Bureau separately issue work permits for foreigners. There are over 10,000 valid work permits, according to data from the BoI and BEPZA.