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Download PDF Private hospitals, paramedical institutes, tutorial schools, and coaching centres must pay certain amounts of annual fees to respective local governments for running their businesses and must be re-registered with respective governments, stipulate the draft ordinances on local governments of different levels.
The three separate draft ordinances — one for zillas, upazilas and union parishads, one for city corporations, and the third for municipalities — have the new provisions to assist the local governments increase their revenue earnings by widening their current tax net.
The proposed laws also have provisions for punishing business organisations if they run their businesses without getting registered with respective local governments and for dodging annual tax payments.
According to existing laws, those organisations currently pay fees to the central government’s departments concerned for getting business licences.
A seven-member high powered committee on Tuesday submitted the draft ordinances to the chief adviser for replacing the existing relevant laws, and also submitted a report on how to strengthen the local governments.
Once the draft ordinances are made into laws, city corporations, municipalities, zillas, upazilas, and union parishads will be empowered to order the huge number of private hospitals, paramedical institutes, tutorial schools, and coaching centres, already established in their areas, for re-registration.
Without getting registered, none of the organisations may run its business within the area of the jurisdiction of the respective local government, says the draft ordinances.
“If an individual establishes a tutorial school, a coaching centre, a private hospital or a paramedical institute without getting registered or if he/she continues to run the organisation despite having the registration cancelled, he/she will be punished with a fine of Tk 5,000,” says the draft ordinance on city corporations.
“If he/she does not stop running the organisation after being fined, he/she will be fined Tk 500 per day for the delay in implementing the order,” the draft ordinance goes on.
If registration of a private business organisation is cancelled on grounds of irregularities like running the organisation without paying annual fees or without being registered, it will get only one chance to apply for re-registration.
Similar provisions of punishment are also proposed in the draft ordinances on local governments of other levels.
To get registered, one will have to apply to the respective local government with a prescribed fee and the local government will register the organisation after proper investigation.
Regarding tutorial schools and coaching centres, respective local governments will also specify the monthly fees those organisations will be allowed to charge their clients or students for the services provided.
Each of the draft ordinances contains a separate chapter titled ‘registration of tutorial schools, coaching centres, private hospitals, etc ‘, detailing the registration procedure including the process of paying the government fees and taxes.
According to the draft ordinances, business organisations must renew their registrations annually by paying stipulated fees to respective local governments.
A local government will collect specified fees fixed by itself from tutorial schools, coaching centres, private hospitals and paramedical institutes which are already established and running within the jurisdiction of the local government, says the draft ordinances.
Regarding expanding the sources of revenue earnings of local governments, the high powered committee recommended that specific laws should be enacted to update the local governments’ taxation system.
The draft ordinances also recommended close monitoring of implementation of the laws, rules and instructions to find out whether they bring any improvement to revenue generation of local governments.
June 13th, 2008 at 12:38 pm
Haven’t they already paying their taxes at the start of own their business? Or is this another form of fees?
-Jan
June 13th, 2008 at 12:39 pm
Haven’t they already paying their taxes at the start of own their business? Or is this another form of fees?
-Jan
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