Wealth tax receipts below number of wealthy people

Doulot Akter Mala | Published: April 14, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

Only over 10,000 well-off people paid wealth tax, worth Tk 2.08 billion, to the exchequer in the fiscal year (FY) 2013-14 although it's a common belief that there has been a boom in the number of the wealthy in the country.Â Â Â Â Â Â Â Â Â
Financial experts raised their eyebrows as official data revealed such a situation and suggested a recast of the taxation policy and cutbacks on the high tax rates.
Over 10,000 well-off people, having net assets above worth Tk 20 million, paid Tk 2.08 billion to the public exchequer as wealth tax in the fiscal year (FY) 2013-14, official data has revealed.
People possessing net assets worth above Tk 20 million come under wealth tax at varied rates.
Although the amount of surcharge, known as wealth tax, almost doubled over that of the previous year, experts termed the shown number of well-off people 'insignificant' in the context of opulent people of society.
The National Board of Revenue (NBR) received Tk 1.01 billion in surcharge from the well-off people in the FY2012-13.
As per existing income tax rules, surcharge in several slabs has been slapped on people having any net asset worth above Tk 20 million. The rates are 10 per cent up to Tk 100 million while 15 per cent for up to Tk 200 million, 20 per cent for up to Tk 300 million and 25 per cent above this mark.
Dr Ahsan H Mansur, Executive Director of Policy Research Institute (PRI), said the yield of such tax could be much higher if imposed in equitable manner.
"The current tax measure is wrong and discriminatory," he said.
People who bought property many years ago are not paying surcharge but those who are investing in new assets have to pay the tax, he noted to point out the policy paradox.
"Tax should be imposed on property, not income. The measure is taxing the income and financial asset of taxpayers," he said.
The economic policy analyst calls it 'double taxation'.
Former income-tax member Md Alauddin suggested introducing property tax at tolerable level, instead of surcharge to increase revenue collection and ensure justice to people.
Many countries have introduced property taxes which were also in Bangladesh earlier, he said.
Now, surcharge collection depends on price declaration by the taxpayers. Only taxpayers are paying the surcharges. Many tycoons who do not pay taxes are not under the purview of surcharge.
doulot_akter@yahoo.com