The government has decided to withdraw its proposal to double the import duty on sugar, just a day after its incorporation in the budget for fiscal year (FY) 2015-16.
In the budget proposal, specific duties on import of both raw and refined sugar have been doubled to Tk 4,000 and Tk 8,000 respectively.
However, the increased duty was to come in force in August, after the holy month of Ramadan.
"It would not be in the Finance Bill," Finance Minister AMA Muhith told newsmen at a post-budget press conference in the city's Osmani Smriti Milonayoton on Friday.
The finance minister expressed his surprise as to how the measure was included in his budget speech. He referred the issue to the National Board of Revenue (NBR) chairman for clarification. The NBR chairman Nojibur Rahman said the tax measure would be amended through the Parliamentary Secretariat.
"It was a political decision that the issue would not be mentioned in the budget speech," Mr Rahman said.
Later, following further queries from the newsmen, the finance minister made it clear that the proposal to enhance duty on sugar would be dropped from the Finance Bill-2015.
Responding to a query on the proposed minimum income tax at Tk 4,000 for individual taxpayers both in urban and rural areas, the NBR chairman said the tax measure may also be amended following instruction of the cabinet.
"We have conducted a survey and slapped the minimum tax to simplify the collection of minimum tax at a uniform rate. But, there are some instructions from the cabinet to make a difference for city and rural areas," he said. The matter is being discussed in the parliament currently and the revenue board will follow the instructions accordingly, he added.
Responding to a query on readjustment of petroleum prices in line with the international prices, the finance minister said the issue will be discussed from next month.
"Tariff value on import of petroleum products will have to be revised for cut the petroleum prices as it is higher than import prices," he added.
On black money whitening facility, the finance minister said there is available provision in the existing income tax law to declare undisclosed income through investment.
New taxpayers will be added in the existing tax-net and the government will gear up the effort, he said.
"The number of taxpayers has been increasing slowly during the last few years. This year, the tax authority will give a shake to increase the number sharply," he said. Responding to a query on Supplementary Duty (SD) on mobile phone and internet use, the finance minister said the mobile phone sector is matured enough and attained an impressive growth to pay the tax.
The finance minister expressed his optimism over achieving the revenue collection target worth Tk 1.76 trillion with 30 per cent growth in the upcoming FY.
"The manpower of revenue board has doubled and capability of its officials increased through training," he added.
At the press briefing, the NBR chairman said the tax authority will not impose any burden on private sector businessmen.
"Public sector has also been brought under the purview of tax," he said.
The NBR will open up a separate tax zone for collection of tax at source, he said.
"The move to realise the stuck-up Tk 200 billion with the court cases will be expedited this year to gear up tax collection," he said.
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