Anyone owning a house or a car will be taxed: Muhith

The government will impose income tax on anyone owning a house or car from the upcoming financial year in a bid to widen the existing tax net, said Finance Minister AMA Muhith Monday.
A survey will be carried out to identify such potential taxpayers, he told the newsmen at the end of his discussion meeting with the members of all parliamentary standing committees on issues concerning the next national budget at the state guesthouse Padma in the city.
"There are only 1.1 million taxpayers in the country. According to my colleagues, the number of people eligible for paying tax will be nearly twice of that figure alone in Dhaka city," he said.
"I also believe the number is much higher as many do not have taxpayers' identification numbers (TINs). Tax would be imposed on them," he added.     
The lawmakers, he said, made their suggestions on investment opportunities of undisclosed money, rationalisation of corporate tax, waiver of SIM tax, scope for investment of remittance in productive sectors, measures for thwarting capital flight, low interest loan for industrialisation, land scarcity, power and gas supply problems, road infrastructure development etc.
On investment of undisclosed income, the finance minister said he was not in favour of granting any opportunity to invest undisclosed income.
"Currently, people can declare their income paying fines under the existing tax law. It will continue," he said.
Suggestions came on withdrawal of subscriber's identification number (SIM) tax as mobile phone operators are paying tax on their income, he said.
"The telecom sector is paying 40 per cent of their revenue earning in various forms to the Bangladesh Telecom Regulatory Commission (BTRC). It (SIM tax) is in addition to that," he added.
Finance minister also hinted at rationalising the corporate tax rates following suggestion coming from the MPs.  
On VAT law, the finance minister said my colleagues have found the new VAT law 'complex' and suggested its simplification.
"The spirit of the VAT law is good. If anyone can keep his financial transactions records right, his or her tax burden would be less," he said.
"We will try to put an efficient public accounting system in place next year," he added.
Mr Muhith laid emphasis on imparting training for developing skilled people and enhancing quality of education. On MPO, he said it is not a good system and will be phased out gradually.
The finance minister said the lawmakers present at the meeting expressed their surprise at the unexplained increase in the number of freedom fighters.  
The standing committee members suggested the government to offer tax benefits to people making investments in development activities in the backward areas of the country.
"Due to scarcity of land we are facing problems to make available lands to investors. But there are some areas including Dinajpur and Rangpur where land is available," he said.
Terming it a very good suggestion, the finance minister said investors could be attracted to make investment in these areas.
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