In the upcoming budget of FY27 the government has proposed stricter tax compliance requirements for the brick manufacturing sector under the Brick Manufacturing and Brick Kiln Establishment (Control) Act, 2013, aiming to strengthen revenue collection and improve regulatory oversight.
According to the proposed provision, no person responsible for issuing or renewing a license for brick production will be allowed to grant approval unless the application is accompanied by proof of advance income tax payment through an A-challan at the prescribed rate, along with an updated income tax clearance certificate. Failure to comply with this requirement will prevent the issuance or renewal of such licenses. In cases where a responsible official proceeds without ensuring compliance, they will be treated as a tax defaulter under the proposed framework.
The amendment further clarifies key definitions, stating that “volume” refers to the internal measurement of a brick kiln based on its length, width, and height, while “brick kiln” refers to any structure or site used for the production of bricks.
Under the revised Section 100, brick manufacturers will be required to pay advance income tax prior to brick burning, with the amount determined based on the size of the kiln. Kilns not exceeding one section or 108,000 cubic feet will be required to pay Tk100,000 in advance tax. For kilns exceeding one section but not more than 1.5 sections, up to 162,000 cubic feet, the tax has been set at Tk150,000. Larger kilns exceeding two sections or 162,000 cubic feet will be required to pay Tk200,000, while kilns that do not fall under these specified categories will be subject to a flat rate of Tk300,000.
