A tax burden may soon fall on motorcycle owners in the upcoming budget. The government is considering bringing motorcycle owners under the income tax net. An advance income tax (AIT) may be imposed on them.

Those who earn a living through ride-sharing services using their own motorcycles, including drivers for services like Uber and Pathao, would also have to pay advance tax.

Advance tax means collecting money in advance on the assumption that a person has taxable income. This has raised the question: does riding a motorcycle necessarily mean a person earns taxable income?

At present, the tax-free income threshold is Tk 350,000. In other words, income tax is payable only if annual earnings exceed that amount.

Many motorcycle riders do not have taxable income. They do not have Taxpayer Identification Numbers (TINs) and are not required to submit income tax returns at the end of the year.

Many people are given motorcycles by their families simply for easier commuting.

Many students also ride motorcycles. They use income from private tutoring or temporary jobs to cover their bike expenses. Many delivery workers provide services using their own motorcycles.

Many people in rural areas also ride motorcycles. A large proportion of them remain outside the tax net. They too may now have to pay advance tax.