• Monday, December 22, 2014

Freedom in the air

Bank account for house rent collection

Star Business Report

Landlords who charge more than Tk 25,000 as rent for a single living unit will now have to maintain a separate bank account for rent collection.
The move comes as part of the National Board of Revenue's efforts to crack down on tax dodging by landlords. Till April this year, the NBR identified 45,601 such home owners in the country, with 30,000 in Dhaka alone.
As per the rule issued yesterday, landlords will now have to maintain a separate register and record regarding particulars of the tenants and the amounts received.
Financial penalty will be imposed for not depositing rents in the bank accounts or for not following the process properly.
The Bangladesh House and Flat Owners Association, a newly formed platform, however, opposed the move, as the landlords might pass off the tax burden on to the tenants in the form of higher rents.
The association also said the bindings may encourage creation of an unholy nexus between the home owners, tenants and revenue officials.

The measure might encourage negative practices among landlords and tax officials, Sajjad Zohir, research director of Economic Research Group, told The Daily Star.
He said ideally the government needs to encourage a move towards such transactions that reduces dependence on hard cash.

Published: 12:00 am Wednesday, July 02, 2014

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