The Civil Aviation Authority of Bangladesh (CAAB) has requested the government for withdrawing non-tax revenue from its earnings. To settle its longstanding dispute over the unpaid tax with the National Board of Revenue (NBR), the CAAB officials have come up with the fresh demand for the withdrawal of non-tax revenue. The aviation regulatory body has recently sent a request to finance ministry soon after it had agreed to pay tax on its income to NBR. The revenue board and the CAAB were in dispute over paying tax since financial year 2011-2012 after the NBR demanded Tk44 crore as income tax to CAAB. The total demand stood at Tk186 crore as of FY 2014-2015. The civil aviation authority was, however, was declining to pay the tax, claiming it a non-taxable entity. It is quite impossible for CAAB to pay non-tax revenue and corporate tax simultaneously to the government exchequer after payment of different costs including staff salaries, repairs and maintenance costs, and development expenditures, said the CAAB officials while explaining the reason for seeking exemption of payment of NTR. During a meeting held on June 29, both parties have decided to recommend the government to waive aviation regulator from paying non-tax revenue. The meeting was held at the civil aviation and tourism ministry. Civil Aviation Minister Rashed Khan Menon, Secretary Khorshed Alam Chowdhury, NBR Chairman Md Nojibur Rahman, CAAB member (finance) Mizanur Rahman, among others, attended the meeting. The aviation regulator has already paid over Tk45 crore income taxes for the fiscal year 2014-2015 to the NBR. It has also paid Tk55 crore as non-tax revenue to the government in the same fiscal year. Meanwhile, the government has set a target of getting Tk100 crore income tax in the current fiscal year from the CAAB.
