jump to navigation

Budget, income tax & simplification of payments June 14, 2007

Posted by bdoza in BANGLADESH, Budget, ECONOMY, Income Tax.
Tags: ,
trackback

 

Budget shows that the total revenue receipt for the coming fiscal year has been estimated at Tk. 57301 crore which is 10.8% of GDP. Of the revenue receipts from NBR source will amount to Tk 43850 crore, 8.3 % of GDP while those from non NBR and non Tax source will be to Tk 13451 crore (2.5%) of GDP.

It is said that bulk of our revenue comes from imports. For a sustainable economy this is not desirable. We have to restore our dependence on import bound revenue collection and augment revenue from domestic sources. We also have to reduce import duties on industrial raw materials and capital machinery and even on the intermediate goods to keep the price of commodities within tolerable limits. Therefore we have to increase the revenue from Income Tax and VAT source.

The discretionary power of the tax official is curtailed and the Tax authorities have been instructed to avoid discretionary tax collection policies.

In this Budget emphasis has been laid on simplification of the tax assessment and payment procedures. Transparency and accountability of the department is to be ensured. .

Government like to create an atmosphere in which the payments is viewed as a symbol of social status.

One of the objectives of the tax measures is to induce the tax payers to pay taxes voluntarily.

Some of the measures proposed:

1) enhance tax exempted income limit for individual tax payers from existing Taka 1 lakh 20 thousand to Taka 1 lakh 50 thousand.

2) introduction of ‘universal self assessment procedures’

3) abolish the tax at source on credit card

4) tax holding benefits to solar energy plants

5) tax rebate facilities to the non-residential Bangladeshi investors

Hope that the measures taken by the Government will ease the tax system and help in collecting more revenue from inside.

Bdoza

Comments»

1. Bdoza - June 15, 2007

Inclusion of the professionals such as specialsied doctors, lawyers etc in the VAT net is also a good step. Hope that this will reduce the harrasment of the professionals as well as increase the tax collection.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: