NBR to continue same tax policy measures for three years
Monday, 17 March 2008
Doulot Akter Mala
The National Board of Revenue (NBR) is exploring options to retain the tax policy measures, which will be taken up in 2008-09 fiscal, for three consecutive years without bringing any changes to it during the period, its chief said Sunday.
It is imperative to continue the same tax policy measures for a certain period of time in order to reap the benefits, the NBR chairman Muhammad Abdul Mazid said.
The NBR chief said these while responding to demands of businessmen of the construction sector in a pre-budget discussion meeting with them.
The NBR chairman said: "The board will fix tax-exemption ceiling on the basis of the size of economy and after scrutinising the income of people in general."
The board has, meantime, finalised its study report on continuation of tax-holiday facility, which is scheduled to expire in the current fiscal.
The government earlier offered the tax-holiday facility for 18 sectors in 2005 for three years.
Sources said the government might continue the facility in a limited scale to salvage the local industry already affected by two consecutive floods followed by a devastating cyclone and bird-flu outbreak recently.
NBR chairman said: "I have received the study report today (Sunday). We will come to a decision whether the government opts for accelerated depreciation on tax holiday issue or not."
While framing the new tax policy, the board will be careful in ensuring a level-playing field for all players in same sector avoiding discrimination, he said.
The International Monetary Fund (IMF) earlier suggested for introducing a fresh income tax ordinance by replacing the existing ordinance that was framed in 1984.
The tax policy unit of NBR has conducted a thorough study on the positive and negative aspects of the ordinance, a NBR official said.
"IMF team wants complete replacement of the ordinance, which the NBR refused in a recent meeting with the mission," he said.
The board could amend some of the rules in line with the IMF suggestion, but will not replace it completely, he added.
The National Board of Revenue (NBR) is exploring options to retain the tax policy measures, which will be taken up in 2008-09 fiscal, for three consecutive years without bringing any changes to it during the period, its chief said Sunday.
It is imperative to continue the same tax policy measures for a certain period of time in order to reap the benefits, the NBR chairman Muhammad Abdul Mazid said.
The NBR chief said these while responding to demands of businessmen of the construction sector in a pre-budget discussion meeting with them.
The NBR chairman said: "The board will fix tax-exemption ceiling on the basis of the size of economy and after scrutinising the income of people in general."
The board has, meantime, finalised its study report on continuation of tax-holiday facility, which is scheduled to expire in the current fiscal.
The government earlier offered the tax-holiday facility for 18 sectors in 2005 for three years.
Sources said the government might continue the facility in a limited scale to salvage the local industry already affected by two consecutive floods followed by a devastating cyclone and bird-flu outbreak recently.
NBR chairman said: "I have received the study report today (Sunday). We will come to a decision whether the government opts for accelerated depreciation on tax holiday issue or not."
While framing the new tax policy, the board will be careful in ensuring a level-playing field for all players in same sector avoiding discrimination, he said.
The International Monetary Fund (IMF) earlier suggested for introducing a fresh income tax ordinance by replacing the existing ordinance that was framed in 1984.
The tax policy unit of NBR has conducted a thorough study on the positive and negative aspects of the ordinance, a NBR official said.
"IMF team wants complete replacement of the ordinance, which the NBR refused in a recent meeting with the mission," he said.
The board could amend some of the rules in line with the IMF suggestion, but will not replace it completely, he added.