In the budget for the next fiscal, a new slab has been proposed at the rate of 30 per cent for individual taxpayers having the annual income of more than Tk 4.42 million (44.20 lakh) with a view to raising revenue through a more egalitarian tax regime and also raised the surcharge on the net asset of such moneyed people or assessees. According to the Finance Bill 2014, no surcharge will be imposed on people having the net asset below Tk 20 million (2.0 crore). People having the net asset of over Tk 20 million but less than Tk 100 million will have to pay surcharge at the rate of 10 per cent on their payable taxes. Wealthy people having their net asset ranging between Tk 100 million (10.00 crore) and Tk 200 million (20.00 crore) have to pay surcharge at the rate of 15 per cent. The rate will be 20 per cent for any asset ranging between Tk 200 million and Tk 300 million. People having the net asset worth over Tk 300 million have to pay 25 per cent tax, the highest of its kind. This scribe feels the government has missed out on a major point when contemplating an increase in taxes on individuals' incomes.
The government has failed to realise the contribution of these high income earners to the national economy. Instead of rewarding these individuals, the government is discouraging them by asking them to pay more taxes, as if they are criminals and they should be prosecuted. The government seemingly could not realise the impact of such a step-motherly treatment being meted out to people who matter for our country and who are declaring their income honestly and paying high taxes. Rather, the government should concentrate on roping in other high taxpayers who are outside the net of the tax department and the government should encourage the potential taxpayers by offering incentives, awards and rebates. The tax exemption limit on medical expenses for salaried taxpayers should be more rational in view of the medicine prices, doctors' fees and expenses.
These high income earners should be given a rebate on their high income, rather than asking them to pay higher taxes for declaring their actual income and paying maximum to the national exchequer. The contribution being made to the national exchequer is worth billions. So why should we tax them despite such a big contribution made by these high income earners. The decision of alienating the bona fide taxpayers in the country, who are the backbone of the country's economic growth, should be reconsidered.
Alihussain Akberali FCA CIP is Chairman of BSRM Group of Companies. [email protected]
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