Govt, MPO-listed edn insts to come under tax net

The government is likely to levy income tax at source on government and MPO-listed schools, colleges and universities by widening the tax net for financing a bigger budget.
On the other hand, profit gains from savings tools or bank deposits will be taxed 10 per cent from the upcoming fiscal year (FY).
It is for the first time that the budget, for the upcoming fiscal, may slap tax on the educational institutions in a bid to bring parity in treatment with the private educational institutions.
Official sources said private educational institutions are paying tax at regular rates while the government ones and those listed under monthly pay order (MPO) enjoying tax exemption.
From the next FY (2015-16), the government will deduct 10 per cent tax at source on bank interests or gains from other deposits of the government and MPO-listed educational institutions.
"The finance minister has instructed not to offer full tax-exemption facility to any sectors in the upcoming financial year," one official said.
Meanwhile, the government may extend tax holiday for Information and Communications Technology (ICT) and handicraft sectors in the upcoming budget.
doulot_akter@yahoo.com