The tax rate is likely to be hiked twofold to 20 per cent from the existing 10 per cent in the budget, to be placed in parliament June 6.
On the other hand, tax at source on provident fund, gratuity and other incomes of private employees may be cut to 10 per cent from the existing 15 per cent, the official sources said.
However, source tax for primary school on bank deposits or other securities may be halved to 10 per cent from 20 per cent.
The up-and-down new fiscal measures on source tax might be placed in the budget for the upcoming fiscal year 2024-25.
As per the Income Tax Ordinance 2023, source tax on interest amount of sanchoypatra, export cash incentives and bank-interest incomes of public universities, MPO enlisted educational institutions, ICAB, ICMAB and ICSB are considered finally paid tax.
Revenue officials have said the public and private entities that are exempt from submission of tax returns and regular tax rates would see the higher taxes in the next financial year.
Also, tax for BTRC, also immune from submission of tax returns in FY 2023-24, may see 20-percent tax on the revenue sharing and other fees collected from mobile-phone operators in a rise from the existing 10 per cent.
Tax on placement shareholders, sponsor shareholders and shareholder directors of the publicly listed companies may go up to 15 per cent in the upcoming fiscal year, irrespective of volume of capital gains.
Individual investors in the listed companies may also face 15-percent tax for the first time if their capital gains exceed Tk 5.0 million.
The government may also increase VAT on tungsten bulb, tubelights to 15 per cent from existing 5.0 per cent.
In the new budget, the NBR may also increase the VAT on SIM card to Tk 300, up by Tk 100, and also impose higher taxes on mobile-phone users' talk time.
Furthermore, corporate tax on cooperative society may also go up to 20 per cent from the existing 15 per cent.
Tax on products having sugar contents would go up in the upcoming fiscal year commensurate with their harmful impact on health.
In the new income tax act, the NBR has imposed higher taxes on private provident fund and gratuity income while it is waived on government employees' PF.
Responding to an FE query, a senior tax official said, "It's difficult to impose tax on government provident fund as the fund is not deposited into any securities or other schemes like private employees' PF".
Regarding tax on educational institutions, the official said currently private universities and medical and engineering colleges are bound to pay 15-percent income tax and submit tax returns.
However, the tax authority exempted the public universities from paying tax at regular rate and also submission of annual tax returns, only collecting source tax on bank deposits.
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