The government is likely to slap advance income tax (AIT) on import of some essential items, including rice, wheat, sugar and petroleum oil, from the upcoming fiscal year (FY), 2015-16.
However, import of these essential commodities may enjoy a reduced rate of AIT at 2.0 per cent.
Currently, AIT is imposed at a rate of 5.0 per cent on all imported products, except 350 items.
Officials said the tax measure has been framed to expand the AIT net in new and potential areas of revenue collection.
However, they said the measure may be reconsidered or changed in the last minute before placing the budget, following suggestions of the government high-ups, as it is a sensitive issue.
Refined sun-flower oil, MS rod, and mobile and fixed wireless telephone sets may also come under the purview of AIT from the upcoming FY.
The officials also said the government will have to expand the tax net in a bid to fulfill the highest-ever target for income tax collection in the FY.
Target for income tax collection has been set at Tk 659.32 billion for FY 2015-16, the highest among the three wings of the National Board of Revenue (NBR).
In FY 2010-11, the government raised AIT on import items to 5.0 per cent from 3.0 per cent.
AIT contributes some 50 per cent of total income tax collection, while the rest is paid by individual and corporate taxpayers.
© 2024 - All Rights with The Financial Express
