The National Board of Revenue (NBR) is set to take strict action against owners of luxury vehicles who have failed to report their car ownership in tax filings.
The Central Intelligence Cell (CIC) under NBR has discovered discrepancies in tax filings involving 5,489 luxury vehicles registered with the Bangladesh Road Transport Authority (BRTA).
The list includes high-end brands such as Lamborghini, Ferrari, Meybach, Rolls-Royce, Bentley, Land Rover, Range Rover, BMW, Jaguar, Tesla, Audi, and Porsche.
According to the CIC’s initial investigation, 2,421 car owners were found to have concealed their luxury car ownership in their income tax returns. As a result, the concerned tax zones have been instructed to take action against these individuals.
Failure to provide adequate explanations could result in significant financial penalties and potential tax evasion lawsuits. The investigation revealed that 1,339 taxpayers did not report owning these luxury cars, while 409 owners failed to submit their tax returns.
In addition, 442 owners have changed vehicle ownership, and 188 vehicles are still under investigation.
The CIC has also ordered the reassessment of tax returns for 43 vehicle owners under Section 67(12), which applies to business firms purchasing expensive vehicles. According to income tax law, firms are prohibited from buying vehicles worth more than 10 percent of their total capital.
An anonymous NBR official stated that authorities will examine whether the ownership of these cars aligns with the reported legal income of the individuals involved. Those found guilty of concealing their vehicle ownership will face financial penalties and tax evasion charges.
It is believed that many of the luxury car owners are former government officials and businesspeople associated with the ousted Awami League government. Some have either gone into hiding or been arrested since the government’s fall in August last year.
The report also highlights a rise in luxury car imports, with 248 vehicles from top brands like Mercedes-Benz, BMW, Range Rover, and Audi imported in the first 11 months of the 2023-24 fiscal year.
Of these, 51 vehicles have a market value (including duties and taxes) exceeding Tk 4 crore.
The CIC has noted that 148 new cars have been purchased recently, and taxes on these vehicles will be closely monitored during the 2025-2026 assessment year to ensure compliance.
