A few amendments to tax proposals likely

Doulot Akter Mala | Published: June 29, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

The Finance Bill-2015, set to be adopted in parliament today (Monday), is likely to see some major changes in tax measures proposed originally, including restoration of tax-benefit on fisheries' income and reduction of rates for others.Â Â Â Â Â Â Â
Finance Minister AMA Muhith is going to make the amendments to the Finance Bill before its adoption by the Jatiya Sangsad (parliament). Â
Apparel exporters, fish-farm owners, individual taxpayers and private universities would see cut in tax rates proposed in the Bill.
The at-source tax on export earnings is likely to be lowered to 0.80 per cent from 1.0 per cent proposed in the Finance Bill for the fiscal 2015-16.
Currently, apparel exporters pay 0.30 per cent tax on export bills while other exporters 0.60 per cent.
After commencement of the new fiscal year on July 1, 2015, all exporters are likely to pay a uniform rate of tax at 0.80 per cent.
The much-talked-about benefit of pared-down tax on fish-farm income might be reintroduced for the upcoming FY.
Until FY 2013-14, owners of fish farms had enjoyed a reduced rate of tax at 3.0 per cent. The revenue board in September 2014 axed the tax-benefit following widespread criticism about abuse of the facility--even by some bigwigs.
Income from fish farms is currently subject to tax at regular rates applicable for corporate taxpayers and individual taxpayers.
From FY 2015-16, the fisheries' income up to Tk 2.0 million would enjoy 5.0 per cent tax. Above this limit, the tax rate doubles to 10 per cent.Â Â
Minimum income tax for individual taxpayers in Dhaka and Chittagong City Corporation areas would be Tk 5,000. Taxpayers in other city-corporation areas might have to pay Tk 4,000 while Tk 3,000 is set for rural areas and district towns.
In the budget proposal the finance minister had fixed a uniform rate of minimum tax at Tk 4,000 for all individual taxpayers. Currently, taxpayers in the city-corporation areas pay Tk 3,000 while in district towns Tk 2,000 and other areas Tk 1,000 at the minimum.
Private universities are likely to come under 7.5 per cent Value Added Tax (VAT) after a little cut. In the budget speech, the finance minister had proposed to slap 10 per cent VAT on the private universities. Currently, these universities are exempt from payment of this tax. Â
Ayurvedic medicine would continue to enjoy exemption into FY 2015-16 as the proposed 5.0 per cent VAT would finally be scrapped from the Finance Bill 2015.
The Appropriations Bill 2015 would be passed tomorrow (Tuesday).
doulot_akter@yahoo.com