Govt may cutAIT on exports,real estate sector
Tuesday, 28 June 2011
Doulot Akter Mala
The government is set to reduce advance income tax rates (AIT) for exporters and real estate sector for the upcoming fiscal following plea of the businesses to stay competitive and sustain in the challenging economic situation, officials said. Sources said exporters are still negotiating with the government on the rates which might be lowered considering revenue aspects. Officials said National Board of Revenue (NBR) is not willing to reduce the rate below 1.0 per cent. The government in the budget for 2011-12 fiscal proposed to raise the tax at source for exporters to 1.50 per cent from 0.500.40 per cent. Finance Minister AMA Muhith also proposed to raise tax for commercial buildings to Tk 20,000 per square metre from Tk 2,000. Revenue officials said apex association of realtors and exporters met with the Prime Minister to appeal for reducing the proposed tax. NBR officials said the rates are yet to be finalized. They said the tax authorities are waiting for the instruction of the government high-ups in this regard. Asked about offering the facilities of formalizing undisclosed income in share market with 10 per cent tax, a senior revenue board official said the instruction might come at the last moment. Officials said they are also expecting the opportunity as some economists and business chambers demanded the facility making U-turn from their earlier position. Parliament will pass the Finance Bill-2011 on June 29 (Wednesday). Sources said the revenue board officials sat in a meeting Monday evening with the finance minister to settle the issue. On customs measures, the government is likely to cut the duty rates for double cabin four-door cars. The proposed duty for 1000 cc double cabin pick-up is 30 per cent while 1001 to 1500 cc to 45 per cent. The rates might be lowered for up to 1500 cc.
The government is set to reduce advance income tax rates (AIT) for exporters and real estate sector for the upcoming fiscal following plea of the businesses to stay competitive and sustain in the challenging economic situation, officials said. Sources said exporters are still negotiating with the government on the rates which might be lowered considering revenue aspects. Officials said National Board of Revenue (NBR) is not willing to reduce the rate below 1.0 per cent. The government in the budget for 2011-12 fiscal proposed to raise the tax at source for exporters to 1.50 per cent from 0.500.40 per cent. Finance Minister AMA Muhith also proposed to raise tax for commercial buildings to Tk 20,000 per square metre from Tk 2,000. Revenue officials said apex association of realtors and exporters met with the Prime Minister to appeal for reducing the proposed tax. NBR officials said the rates are yet to be finalized. They said the tax authorities are waiting for the instruction of the government high-ups in this regard. Asked about offering the facilities of formalizing undisclosed income in share market with 10 per cent tax, a senior revenue board official said the instruction might come at the last moment. Officials said they are also expecting the opportunity as some economists and business chambers demanded the facility making U-turn from their earlier position. Parliament will pass the Finance Bill-2011 on June 29 (Wednesday). Sources said the revenue board officials sat in a meeting Monday evening with the finance minister to settle the issue. On customs measures, the government is likely to cut the duty rates for double cabin four-door cars. The proposed duty for 1000 cc double cabin pick-up is 30 per cent while 1001 to 1500 cc to 45 per cent. The rates might be lowered for up to 1500 cc.