The Financial Express

Int'l payments thru' credit cards: BB asks AD banks to ensure tax collection

| Updated: January 31, 2020 20:52:05

Evaly and Fianancial Express Evaly and Fianancial Express
Picture used for illustrative purpose only Picture used for illustrative purpose only

The central bank has asked the authorised dealer (AD) banks to properly ensure tax collection while their customers are making payments for importing goods or services using international credit cards.

The AD banks will have to ensure that such card-holders have duly received their goods or services from overseas, officials said.

Besides, the banks will have to inform their customers of being cautious, and not to purchase goods/services from any unreliable source to avert unexpected risk.

Credit cards are used for making payments against any permissible goods or services, including digital marketing advertisements through various online platforms, like - Google and Facebook, according to a clarification, issued by the Bangladesh Bank (BB) on Thursday.

Besides, the cards can be used for making payments against other permissible goods or services, such as - fees for downloading application software packages, e-books, magazines, and subscription of newspapers etc from sources abroad.

When asked how the banks concerned can ensure proper tax collection from the cardholders, a BB senior official said the banks will have to closely monitor their customers in this connection.

Talking to the FE, another BB official said it is a complex issue that should be addressed through consultations with commercial banks, the National Board of Revenue (NBR), and the central bank.

"The issue needs to be discussed with stakeholders to properly ensure tax collection from the cardholders," Syed Mahbubur Rahman, Managing Director and Chief Executive Officer (CEO) of Mutual Trust Bank Limited, told the FE.

The ADs will strictly observe Know Your Customers (KYC) and Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) standards, follow usual reporting routine to the BB, and ensure compliance of regulations concerning duties/taxes applicable against such transactions, the central bank said in a previous circular.

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