About 7.5 million people who hold a taxpayer identification number in Bangladesh do not file an income tax return in a given year, according to figures published by Prothom Alo on Monday. The country has roughly 12.5 million TIN holders, and about 5 million of them file returns annually.

The newspaper, citing National Board of Revenue officials, said many people with taxable income are among those who stay away. Holding a TIN does not by itself make a return compulsory; the obligation depends on income and on the person's role. But officials believe a large number of people who should file are not doing so.

Under Section 166 of the Income Tax Act 2023, a return is required when a person's income exceeds the tax-free limit for the year, or when tax has been assessed on them in any of the previous three years. Company owners, partners, directors, managers and shareholders, public servants, and non-residents with a permanent establishment in Bangladesh must also file.

The penalties are set out in the same law. Section 266 allows a penalty of 10 percent of the last assessed tax, with a minimum of Tk 1,000. A continuing default can add Tk 50 for every day it lasts, and failing to supply information during an investigation can draw a separate penalty of up to Tk 50,000.

Section 174 adds a second cost. Tax that should have been paid is charged an extra 2 percent for every month of delay, counted in whole months and capped at 24 months. Late filers also lose the investment tax rebate, which can be claimed on savings certificates and other approved investments.

The most visible power is the disconnection of utilities. Tax officials can order gas, electricity and water connections cut when a return is not filed on time, according to the current income tax guidance. The power is not limited to homes: factories and other businesses that fail to file can also lose their connections.

Salaries can be affected too. First-class government officers and middle-level private-sector employees whose pay falls within the prescribed limit are required to file. If they do not, their office can hold back salary or allowances until a copy of the return is produced.

The filing calendar has changed this year. Returns can be submitted at any point in the year, rather than only around a single deadline. Filers who submitted between July and September qualified for a rebate, those who file between October and December pay the tax due without a penalty, and returns filed from January onwards attract the extra tax and fines.

What remains unclear is how many of the 7.5 million non-filers actually have taxable income. The NBR has not published a breakdown, and the newspaper's figure covers people who hold a TIN, not all adults. It is also not known whether the board will launch a special enforcement drive this year, or how often it has used the utility-disconnection power in practice.

The immediate step for a taxpayer is to check whether a return is due and to file it before January, when the penalty clock starts. Returns are submitted through the NBR's e-Return system, and the acknowledgement receipt should be kept.

The NBR has not announced a fresh deadline or a new amnesty for non-filers. For now, the law's message is simple: a TIN is not a formality, and the cost of ignoring it can arrive as a fine, a bigger tax bill or a knock at the meter.