The government expects a revenue of Tk 3.0 billion from its offer made in the budget for the fiscal 2008-09, on formalising undisclosed yet legal income with a payment of 7.0 per cent penal tax.
The opportunity will remain valid for four months, from July to October 2008.
Tax officials said the government has failed to raise the confidence level of taxpayers due to some wrong steps, which, they feel, could be the main reason of setting the target of tax collection on the lower side.
The caretaker government last year offered the opportunity of legalising undisclosed income for four months from June through September.
Under a special statutory regulatory order of the National Board of Revenue (NBR), a person was required to pay a penal tax of 5.0 per cent plus normal tax rate under the opportunity.
The scheme, however, failed to make any major headway as only Tk 52.13 billion worth of undisclosed income was 'legalised' during the period, with the government earning an extra tax of Tk 8.02 billion.
"The government will have to ensure all kind to support to the undisclosed money holders who declared their lawfully earned money in response to government's offer," a tax commissioner said.
To bring in the undisclosed money in formal channel, it should be ensured that taxpayers declaring undisclosed fund are not harassed in any form.
Strengthening enforcement of law is necessary to get sufficient response on this offer, he added.
In an initial estimation, the revenue board calculated a total of Tk 1.06 billion net tax revenue collection due to readjustment of income tax measures.
The board will lose Tk 2.05 billion revenue due to revision in income tax related measures while Tk 3.31 billion will be collected with the change.
The NBR will lose Tk 1.25 billion revenue for the reduction proposed in the budget in case of profit earned by companies while the loss will be Tk 350 million due to waiver of tax-on-tax provision for petroleum exploration company, Tk 250 million for withdrawal of minimum tax deduction on the basis of turnover irrespective from profit or loss, and Tk 100 million for tax exemption offer for SMEs.
On the contrarary, the revenue board will lose Tk 50 million due to increase in tax-free ceiling of transport allowance for salaried person while Tk 30 million for increase in depreciation rate for computer and computer products and Tk 20 million from upward adjustment of tax threshold for women and senior citizen to Tk 165000 from Tk 150000.
Apart from Tk 3.0 billion tax from undisclosed income, the board will able to collect Tk 200 million for increase in tax-rate on company dividend and Tk 50 million as tax at source from advertisement bill of newspapers and television channels.
The board will gain Tk 60 million taxes from foreign technicians and other steps to increase income tax collection in the next fiscal.
For the upcoming fiscal, income tax collection target has been set at Tk 130.54 billion, which is 24 per cent of the total tax-revenue target of Tk 545 billion for the fiscal.
Govt expects Tk 3.0b from disclosure of untaxed funds
Doulot Akter Mala | Published: June 15, 2008 00:00:00 | Updated: February 01, 2018 00:00:00
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