5pc advance income tax on fruit import

The government has imposed 5.0 per cent Advance Income Tax (AIT) on import of all types of fruits, cash registers and propellers in the proposed budget for fiscal year 2021-22.

AIT on import of liquor, perfume has been proposed to increase to 20 per cent from the existing 5.0 per cent.

Withholding tax on suppliers has been relaxed by fixing three-tier instead of exiting four-stage slabs.

As per budget proposal, suppliers will have to pay 3.0 per cent tax if their base amount is below Tk 5.0 million, while 5.0 per cent tax for above Tk 5.0 million up to Tk 20 million.

AIT on import of raw materials of cement has been reduced to 2.0 percent from 3.0 per cent, while ocean going ships would enjoy 1.0 per cent AIT on import stage instead of exiting 2.0 per cent.

On the supply stage, tax at source for cement, rod and rod-like products has been reduced by 1.0 percentage point in the budget proposal.

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