Monday, 6th April 2026
Khabor Wala Desk
Published: 19th January 2026, 3:27 AM
Electricity has become indispensable in modern life, both in rural and urban areas. Yet, according to the latest tax regulations, failing to submit this year’s income tax return could have serious repercussions. Tax authorities now have the legal power to disconnect electricity, gas, or other government-provided services for defaulters.
This authority comes directly under the provisions of the Income Tax Act. For the fiscal year 2025–26, the guidelines outline five measures that may be taken against taxpayers who fail to file returns. Among these, service disconnection is a particularly severe consequence.
| Measure | Description |
|---|---|
| Penalty Imposition | Under Section 266 of the Income Tax Act, a fine of 10% of the last assessed tax is imposed for failing to file a return, with a minimum of BDT 1,000. Daily additional fines of BDT 50 may be applied until compliance. Special conditions apply: new taxpayers face a minimum BDT 5,000 fine, while those with prior assessments may be fined 50% of the last assessed tax or BDT 1,000, whichever is higher. |
| Reduction of Tax Reliefs | Section 174 allows authorities to limit tax exemptions or incentives. Delayed returns may forfeit benefits such as investment-related tax relief or other allowances. |
| Additional Tax | A 2% surcharge per month may be levied on outstanding taxes if returns are late, increasing the taxpayer’s financial burden. |
| Service Disconnection | Tax officers can suspend utilities including electricity, gas, and water connections for non-compliance. |
| Salary or Allowance Disruption | Submission of returns is mandatory to receive salary or allowances in both public and private employment; non-filing can complicate disbursements. |
According to officials at the National Board of Revenue (NBR), any taxpayer with taxable income who fails to submit a required return may have their home or business utility lines disconnected.
Two categories of taxpayers are required to submit returns:
Individuals whose taxable income exceeds BDT 350,000 annually.
Individuals for whom filing is mandatory, as proof of return is required for 39 types of government services.
Returns for individual taxpayers are generally due from 1 July to 30 November. For 2025–26, the deadline has been extended to 31 January. Taxpayers must now submit returns online via www.etaxnbr.gov.bd, though certain categories remain exempt from online submission.
Currently, there are 11.5 million registered Tax Identification Number (TIN) holders, of which approximately 3.1 million have submitted their returns this year.
Failing to comply with tax filing obligations not only risks financial penalties but also threatens access to essential utilities, underscoring the importance of timely and accurate tax reporting.
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