NBR, DPDC to join hands to share power consumption data

The National Board of Revenue (NBR) and the Dhaka Power Distribution Company Limited (DPDC) will team up to exchange information on power consumption in a bid to curb tax evasion in the energy sector. 

The organisations are scheduled to sign a memorandum of understanding (MoU) today to this end, NBR officials said. 

The agreement will provide NBR access to power consumption data of more than 16.15 lakh electricity consumers– both individual and companies– under DPDC's jurisdiction covering Dhaka South City Corporation and a part of the adjoining Narayanganj district.

“The exchanging information of the users will help boost revenue, ease the workload on tax officials and will benefit the taxpayers,” a senior official of the NBR said

The official said, “If data of electricity consumption are available, tax officials will no longer need to rely on assumptions while assessing tax returns against production by manufacturing companies.”

Sources said NBR had decided to sign the MoU with DPDC earlier this year but the process was delayed due to complexities. The tax authority has plans to sign similar agreements with other energy distribution agencies as well. 

The tax authority will also sign an MoU with Titas Gas Transmission and Distribution Company to get gas consumers' data to measure out actual taxable incomes based on gas usage.

At present, taxpayers are required to submit proof of tax returns for obtaining and continuing power and gas connectivity according to the Income Tax Ordinance 1984, the official included.

However, NBR data reveals that only 29,680 companies submitted their income tax returns in the FY 2021-22 while over 2 lakh companies had been registered through the office of the Registrar of Joint Stock Companies and Firms till June this year.

The number of Taxpayer Identification Number (TIN) holders had increased to 75.10 lakh by April 2022 and the number of tax payers to 29 lakh by March 2022, Finance Minister AHM Mustafa Kamal said in his budget speech for the current fiscal year.

The government plans to increase the number of TIN holders to 1 crore.