NBR cautious about levying tax on stock trading
Wednesday, 28 April 2010
FE Report
The revenue board chief Tuesday said the board will not take any measure that may hurt small investors in the capital market as it is considered the most sensitive area of the economy.
"We will take cautious steps to adopt any new measure for the share market. It is not our aim to hurt the market or to make it panicky," said National Board of Revenue (NBR) chairman Dr Nasiruddin Ahmed.
He said this at a press briefing at the revenue board conference room in the city.
"We want a stable share market," he said responding to a question on a proposal of a parliamentary committee for imposition of tax on the share market.
The NBR will review the main factors which regulate the market before taking any move to levy tax, he said.
NBR member Aminur Rahman, who heads the tax policy-wing, said the NBR is always supporting to develop the share market with different policy measures.
On availing the opportunity of declaring undisclosed income, the NBR chairman said: "Response from the undisclosed money holders is not satisfactory so far. We expect better response in the last two months of the current fiscal."
Aminur Rahman said there is still time left for people to respond as the offer remains valid until June 2010.
Investors are not bound to disclose their money before the deadline, he added.
Until March a total of 53 people whitened their undisclosed income worth Tk 472 million in four sectors---capital market, real estate, new industries, infrastructure development and repairing, modernisation and extension of old industries.
Some 16 people altogether have declared Tk 170 million in capital market followed by six people Tk 135 million in setting up new industries and infrastructure development, two people Tk 110 million in repairing, extension and modernising old industries and 29 people Tk 56 million in real estate.
Most of the investment goes into the share market followed by real estate and industry, he said.
Responding to a query on the ongoing survey activities, NBR member Shamvu Nath expressed his optimism over achieving the target of netting 0.4 million new taxpayers by June next.
"The survey activities get momentum in the second half of the current year. We expect to meet the target of including new taxpayers by this year," he said.
Meanwhile, the revenue board has scrapped the provision of advance payment of tax for the people unwilling to come under the tax net.
Aminur Rahman said: "We have ordered all the field offices not to collect Tk 1000 advance tax from the taxpayers unwilling to come under the tax net during the survey."
The tax thus collected was later adjusted with the actual payable tax as the NBR had made advance tax mandatory for those who apply for TIN (taxpayers' identification number).
The revenue board chief Tuesday said the board will not take any measure that may hurt small investors in the capital market as it is considered the most sensitive area of the economy.
"We will take cautious steps to adopt any new measure for the share market. It is not our aim to hurt the market or to make it panicky," said National Board of Revenue (NBR) chairman Dr Nasiruddin Ahmed.
He said this at a press briefing at the revenue board conference room in the city.
"We want a stable share market," he said responding to a question on a proposal of a parliamentary committee for imposition of tax on the share market.
The NBR will review the main factors which regulate the market before taking any move to levy tax, he said.
NBR member Aminur Rahman, who heads the tax policy-wing, said the NBR is always supporting to develop the share market with different policy measures.
On availing the opportunity of declaring undisclosed income, the NBR chairman said: "Response from the undisclosed money holders is not satisfactory so far. We expect better response in the last two months of the current fiscal."
Aminur Rahman said there is still time left for people to respond as the offer remains valid until June 2010.
Investors are not bound to disclose their money before the deadline, he added.
Until March a total of 53 people whitened their undisclosed income worth Tk 472 million in four sectors---capital market, real estate, new industries, infrastructure development and repairing, modernisation and extension of old industries.
Some 16 people altogether have declared Tk 170 million in capital market followed by six people Tk 135 million in setting up new industries and infrastructure development, two people Tk 110 million in repairing, extension and modernising old industries and 29 people Tk 56 million in real estate.
Most of the investment goes into the share market followed by real estate and industry, he said.
Responding to a query on the ongoing survey activities, NBR member Shamvu Nath expressed his optimism over achieving the target of netting 0.4 million new taxpayers by June next.
"The survey activities get momentum in the second half of the current year. We expect to meet the target of including new taxpayers by this year," he said.
Meanwhile, the revenue board has scrapped the provision of advance payment of tax for the people unwilling to come under the tax net.
Aminur Rahman said: "We have ordered all the field offices not to collect Tk 1000 advance tax from the taxpayers unwilling to come under the tax net during the survey."
The tax thus collected was later adjusted with the actual payable tax as the NBR had made advance tax mandatory for those who apply for TIN (taxpayers' identification number).