NBR may revise SIM, corporate taxes, money whitening step
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proposals on whitening black money, the Tk 1,200 VAT and supplementary
duty on mobile SIM card and the hike in corporate tax of non-listed
companies.
Sources said the NBR may propose tightening the options for whitening
black money and reducing the SIM card tax. Besides, it is likely to
withdraw the budgetary proposal for increasing corporate tax of
non-listed companies.
The NBR will submit its revised plan to the finance minister by today
or tomorrow, the sources said. The budget is scheduled to be passed in
parliament tomorrow.
Amid widespread criticism of the provision for whitening black money,
the NBR is now considering imposing 10 to 15 percent tax on it. Its
earlier proposal offered black money holders the option to legalise
their undeclared income by paying 7.5 percent tax.
The criticisms came specially when the finance minister, before his
budget speech, had repeatedly said that it is unethical to allow
whitening black money and such moves discourage genuine taxpayers. BNP
kept such provisions since it came to power in 2001.
As the finance minister surprisingly changed his stance and proposed
for continuing the provision in his budget speech, it triggered
criticism even from the ruling party lawmakers --including the finance
minister's son Naser Rahman.
"The government is now considering an end to such option. The finance
minister is likely to announce that this is the last chance to whiten
black money," said an NBR source.
Regarding the SIM card issue, which generated much controversy as the
government has imposed an unusual tax of Tk 1,200 per card, the NBR is
now considering lowering the VAT and supplementary duty to Tk 750.
A recent writ petition filed in the High Court on this issue shows that
even Tk 750 per SIM card is much higher than what the total VAT and
supplementary duty would actually be, if the NBR uses its present
formula.
The price of each SIM card is only $2 to $4 [Tk 120 to Tk 240]
depending on the quality. But the NBR put its price at over Tk 2,100 to
justify its VAT and tax of Tk 1,200.
The NBR also proposed an increase of corporate tax for non-listed
companies to 40 percent from the current 37.5 percent. But as this has
been criticised as a non-incentive for small businesses and industries,
the NBR is planning to keep it at 37.5 percent.
Taken from:
Daily Star
Dhaka, Bangladesh
Wed. June 29, 2005