Response to govt offer on undisclosed income poor
Saturday, 31 October 2009
Doulot Akter Mala
The government, in the backdrop of poor response in the first quarter of current fiscal, has decided to launch a campaign to make people aware of the opportunity given for investment of their undeclared income on payment of tax at a reduced rate.
The National Board of Revenue (NBR) failed to attract any sizeable investment of undisclosed money in designated sectors during the first three months of the current fiscal. Only eight persons have, so far, responded, said a senior tax official.
"These persons disclosed Tk 30 million as their undeclared income in the July-September period with the payment of 10 per cent tax," he said.
They have paid Tk 3.5 million worth of taxes against the disclosed amount, he said expressing hope that the amount will increase gradually.
"It takes time to invest in a new industry. The opportunity will remain valid throughout the current fiscal. We hope the disclosure of untaxed income will be higher by the end of this year," he said.
The new order makes it mandatory for the taxpayers, who intend to legalise their undisclosed income, to furnish the source of that money, but the government will not scrutinise the declared source, he said.
In the current fiscal, the government under the scheme called for using the undeclared money in some investment-intensive sectors, including share market, real-estate sector and new industries.
"The government has offered the opportunity in line with the request of the leading businessmen and chamber bodies amid strong criticism from economists," he said.
The government has created the provision to boost local investment and spur economic growth.
"Investors will come forward to investing their money in setting up new industries if the government can ensure smooth supply of gas and electricity," the official said.
The NBR received Tk 8.02 billion in taxes in 2007-08 and Tk 1.05 billion in 2008-09 through similar offer.
Simultaneously, a drive against tax-evaders is going on.
"The NBR is conducting one-to-one discussion with the large taxpayers to collect due taxes through negotiation before expiry of the deadline for individual tax return submission," said a top revenue board official.
Although the NBR has received a poor response from both individual taxpayers and undisclosed money holders the growth of revenue under the income tax department was higher, thanks to the internal survey.
The income tax department has achieved 26 per cent growth in the first quarter over the corresponding period collecting revenue worth Tk 24.24 billion.
Officials said the income tax collection growth will rise sharply in the second quarter after disbursement of fund for annual development programme (ADP).
The NBR receives a big chunk of advance income tax (AIT) after implementation of ADP, they said.
The government, in the backdrop of poor response in the first quarter of current fiscal, has decided to launch a campaign to make people aware of the opportunity given for investment of their undeclared income on payment of tax at a reduced rate.
The National Board of Revenue (NBR) failed to attract any sizeable investment of undisclosed money in designated sectors during the first three months of the current fiscal. Only eight persons have, so far, responded, said a senior tax official.
"These persons disclosed Tk 30 million as their undeclared income in the July-September period with the payment of 10 per cent tax," he said.
They have paid Tk 3.5 million worth of taxes against the disclosed amount, he said expressing hope that the amount will increase gradually.
"It takes time to invest in a new industry. The opportunity will remain valid throughout the current fiscal. We hope the disclosure of untaxed income will be higher by the end of this year," he said.
The new order makes it mandatory for the taxpayers, who intend to legalise their undisclosed income, to furnish the source of that money, but the government will not scrutinise the declared source, he said.
In the current fiscal, the government under the scheme called for using the undeclared money in some investment-intensive sectors, including share market, real-estate sector and new industries.
"The government has offered the opportunity in line with the request of the leading businessmen and chamber bodies amid strong criticism from economists," he said.
The government has created the provision to boost local investment and spur economic growth.
"Investors will come forward to investing their money in setting up new industries if the government can ensure smooth supply of gas and electricity," the official said.
The NBR received Tk 8.02 billion in taxes in 2007-08 and Tk 1.05 billion in 2008-09 through similar offer.
Simultaneously, a drive against tax-evaders is going on.
"The NBR is conducting one-to-one discussion with the large taxpayers to collect due taxes through negotiation before expiry of the deadline for individual tax return submission," said a top revenue board official.
Although the NBR has received a poor response from both individual taxpayers and undisclosed money holders the growth of revenue under the income tax department was higher, thanks to the internal survey.
The income tax department has achieved 26 per cent growth in the first quarter over the corresponding period collecting revenue worth Tk 24.24 billion.
Officials said the income tax collection growth will rise sharply in the second quarter after disbursement of fund for annual development programme (ADP).
The NBR receives a big chunk of advance income tax (AIT) after implementation of ADP, they said.