Income tax ceiling may be unchanged
Doulot Akter Mala | Saturday, 31 May 2008
The government is likely to keep the income tax threshold unchanged in fiscal 2008-09.
Currently, the income tax exemption ceiling is Tk 150,000, which might remain unchanged in the next fiscal, officials said.
The revenue board has been studying the tax-exemption ceiling of the last ten years, which might help it determine the new ceiling for fiscal 2008-09, National Board of Revenue (NBR) chairman Muhammad Abdul Mazid told the FE Thursday.
"There has been a big jump in tax-exemption ceiling by Tk 30,000 to Tk 150,000 in the current fiscal from Tk 120,000 previously," he said.
In 1998-99, the amount of tax exemption limit was Tk 60,000 that increased to Tk 75,000 in 1999-2000. It was enhanced in almost every year and reached the level at Tk 150,000 in 2007-08.
The government is likely to consider the proposal of major trade bodies on increase of the tax exemption ceiling after the review of its last ten years' trend and the rate of inflation, the NBR chief said.
The tax net will shrink if the government raises the tax-exemption ceiling, the NBR chairman said adding that there would probably be no change in existing tax rate.
"The government is not in favour of raising tax rate. It could collect more tax by widening the tax net," the NBR chief said.
Currently, around 1.0 million people are paying taxes against 2.2 million TIN (Taxpayers Identification Number) holders.
The revenue board this year launched a programme to encourage voluntary filing of tax returns by cross-section of people.
"We are expecting that the number of TIN holders will rise to 2.5 million in the current fiscal," NBR chief said.
Currently, the income tax exemption ceiling is Tk 150,000, which might remain unchanged in the next fiscal, officials said.
The revenue board has been studying the tax-exemption ceiling of the last ten years, which might help it determine the new ceiling for fiscal 2008-09, National Board of Revenue (NBR) chairman Muhammad Abdul Mazid told the FE Thursday.
"There has been a big jump in tax-exemption ceiling by Tk 30,000 to Tk 150,000 in the current fiscal from Tk 120,000 previously," he said.
In 1998-99, the amount of tax exemption limit was Tk 60,000 that increased to Tk 75,000 in 1999-2000. It was enhanced in almost every year and reached the level at Tk 150,000 in 2007-08.
The government is likely to consider the proposal of major trade bodies on increase of the tax exemption ceiling after the review of its last ten years' trend and the rate of inflation, the NBR chief said.
The tax net will shrink if the government raises the tax-exemption ceiling, the NBR chairman said adding that there would probably be no change in existing tax rate.
"The government is not in favour of raising tax rate. It could collect more tax by widening the tax net," the NBR chief said.
Currently, around 1.0 million people are paying taxes against 2.2 million TIN (Taxpayers Identification Number) holders.
The revenue board this year launched a programme to encourage voluntary filing of tax returns by cross-section of people.
"We are expecting that the number of TIN holders will rise to 2.5 million in the current fiscal," NBR chief said.