Bangladesh’s National Board of Revenue has proposed amendments to the Income Tax Act 2023 requiring proof of income tax return submission for opening bank accounts and purchasing motorcycles of 150cc or higher capacity. The same requirement will apply to buying three-wheeler motor vehicles. However, foreign nationals serving as company directors or sponsors would be exempted from the return submission obligation under the proposed changes.

The amendment adds bank accounts and motorcycles to the list of services and goods that require tax return proof under Section 264 of the Income Tax Act. Exceptions will apply to student accounts, no-frills accounts, and others exempted by government notification. No-frills accounts, designed for low-income individuals, will remain accessible with minimal documentation and no mandatory deposit requirements.

The proposal also mandates educational institutions with return obligations to show proof of submission when renewing approvals. The NBR initially considered imposing advance income tax on motorcycles but withdrew the plan following opposition from riders and lack of government approval. The revised proposal focuses instead on ensuring tax compliance through return documentation.