Hike in all govt fees on the cards
Nazmul Ahsan | Wednesday, 21 December 2011
Nazmul Ahsan
The Ministry of Finance (MoF) has undertaken all-out efforts to increase the income of the government from non-tax revenue and non-NBR tax revenue sources to help reduce its borrowing from the banking system. The MoF last week asked all government ministries and divisions to send their tax enhancement proposals to the Finance Division of the ministry by December 31, a top Finance Ministry official said on Tuesday. Finance Minister AMA Muhith has favoured the hike in all taxes (non-tax revenue and non-NBR tax revenue) other than taxes coming from under the head of National Board of Revenue (NBR). The areas for the proposed hike include non-judicial stamp, vehicle registration fee, vehicle fitness fee, land certificate fee, land registration fee, mutation fee, land development fee, bridge toll, narcotics tax, license fee for marriage registrar, stamp vendor license fee, and renewal fee and license fee for narcotics business. Besides, fee for urgent passports and fee for those falling under the category of 'no visa required for travel to Bangladesh' will also be increased, a source said. "The execution of upward adjustment of rates of non-tax revenue and non-NBR tax revenue is being implemented as a number of ministries have, meanwhile, submitted their proposals to the Finance Ministry," a senior MoF official told the FE. He said the decision in this regard was taken at the meeting of Coordination Council, held on October 24 last, amid soaring bank borrowing of the government and less than expected revenue income during the first five months of 2011-2012 fiscal year. The bank borrowing target of the government for the whole of the current fiscal year has already been exhausted by the end of November. Officials at the Finance Division said as per the rule of the government, the Finance Ministry is the sole authority to approve tax hike proposals of other ministries for non-tax revenue and non-NBR tax revenue. Around 20 per cent of the yearly total revenue income of the government comes from non-tax revenue and only about three per cent from non-NBR tax revenue. The rest of the revenue income is generated by NBR tax, according to a budget document of the Finance Ministry. The government fixed the target of Tk 226 billion under the head of non-tax revenue and Tk 39.14 billion from non-NBR tax revenue for the current 2011-2012 fiscal year. However, officials fear a shortfall of around Tk 50 billion to Tk 60 billion in the two heads in the current fiscal year due to sluggish business activities in the country and lower- than-expected revenue income from the head of license renewal fee from mobile operators. A top official at the MoF said the existing rates falling under non-tax revenue and non-NBR tax revenue fixed before 2000 will see a drastic hike, while rates fixed between 2000 and 2006 nominal hikes.
The Ministry of Finance (MoF) has undertaken all-out efforts to increase the income of the government from non-tax revenue and non-NBR tax revenue sources to help reduce its borrowing from the banking system. The MoF last week asked all government ministries and divisions to send their tax enhancement proposals to the Finance Division of the ministry by December 31, a top Finance Ministry official said on Tuesday. Finance Minister AMA Muhith has favoured the hike in all taxes (non-tax revenue and non-NBR tax revenue) other than taxes coming from under the head of National Board of Revenue (NBR). The areas for the proposed hike include non-judicial stamp, vehicle registration fee, vehicle fitness fee, land certificate fee, land registration fee, mutation fee, land development fee, bridge toll, narcotics tax, license fee for marriage registrar, stamp vendor license fee, and renewal fee and license fee for narcotics business. Besides, fee for urgent passports and fee for those falling under the category of 'no visa required for travel to Bangladesh' will also be increased, a source said. "The execution of upward adjustment of rates of non-tax revenue and non-NBR tax revenue is being implemented as a number of ministries have, meanwhile, submitted their proposals to the Finance Ministry," a senior MoF official told the FE. He said the decision in this regard was taken at the meeting of Coordination Council, held on October 24 last, amid soaring bank borrowing of the government and less than expected revenue income during the first five months of 2011-2012 fiscal year. The bank borrowing target of the government for the whole of the current fiscal year has already been exhausted by the end of November. Officials at the Finance Division said as per the rule of the government, the Finance Ministry is the sole authority to approve tax hike proposals of other ministries for non-tax revenue and non-NBR tax revenue. Around 20 per cent of the yearly total revenue income of the government comes from non-tax revenue and only about three per cent from non-NBR tax revenue. The rest of the revenue income is generated by NBR tax, according to a budget document of the Finance Ministry. The government fixed the target of Tk 226 billion under the head of non-tax revenue and Tk 39.14 billion from non-NBR tax revenue for the current 2011-2012 fiscal year. However, officials fear a shortfall of around Tk 50 billion to Tk 60 billion in the two heads in the current fiscal year due to sluggish business activities in the country and lower- than-expected revenue income from the head of license renewal fee from mobile operators. A top official at the MoF said the existing rates falling under non-tax revenue and non-NBR tax revenue fixed before 2000 will see a drastic hike, while rates fixed between 2000 and 2006 nominal hikes.