Tax proposal on savings tools withdrawn, 0.05pc tax on stock brokers' commission

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FE Report
The Jatiya Sangsad (parliament) Tuesday passed the finance bill 2010 with some changes in the original proposals.
The proposal to deduct tax at the rate of 10 per cent from the interest on any income from the government savings tools was withdrawn while tax at source on the commission of the members of the stock exchanges was reduced to 0.05 per cent from the proposed 0.1 per cent.
The proposal to reduce the duty rate on cars having capacity between 1501 and 1650 cc was withdrawn.
Finance Minister Abul Maal Abdul Muhith placed the Finance Bill-2010 before the parliament on June 10.
The other major changes are reduction in export sector tax at source from 1.0 per cent to 0.5 per cent and VAT at business level from 3.0 per cent to 2.0 per cent, withdrawal of duty on hearing aid, retention of 5.0 per cent regulatory duty on milk powder and duty withdrawal of import of dates.
Income tax of stevedoring agencies, C&F agents and private security service providers
was reduced from 15 per cent to 10 per cent.
A portion of revenue exceeding the targeted amount will be distributed among the taxmen as incentive, the finance minister announced
Finance minister in his speech said duty imposed on sugar would be applicable after Ramadan, when the essential is heavily consumed.
Many lawmakers and other stakeholders proposed to reduce duty on mobile sets but it is not possible at this time, Mr Muhith told the JS.
It is also not possible to consider more incentives for shipbuilding and salt industry or emission based duty on vehicles in the budget for 2010-11, he said.
"The issue will be discussed later with the stakeholders," he added.
Mr Muhith said the government wants to increase revenue and the income tax department would be expanded.
"We want to expand tax net and it will be hassle-free and without any complicacy to encourage the taxpayers to pay more taxes," he said at the parliament.
The finance bill was placed with the budget to bring changes in The Excise & Salt Act, 1944, The Customs Act, 1969, Income-Tax Ordinance, 1984 and Value Addition Tax Act, 1991.
The bill proposed that a company will have to pay tax at 10 per cent on share trading income, five per cent tax on income of sponsor shareholders or directors of a listed company and three per cent on the premium value of shares of companies being sold at premium value.
The minister proposed to collect tax at source from real estate developers at the time of registration of flat or building at a rate Tk 2,000 or Tk 800 depending on locations.
The National Board of Revenue will introduce spot assessment system and expand coverage of on-going survey to net new taxpayers through outsourcing, the minister proposed.
The NBR will set up Large Taxpayers Unit (LTU) in Chittagong by next fiscal year and a limited number of the highest taxpayers will get tax cards.