Taxing the wealthy rationally

I am disturbed by the fact that the Ministry of Finance has proposed a new slab of Tk 3.0 million (30.00 lakh) @ of 30 per cent for the individual tax payer having annual income of more than Tk 4.42 million (44.20 lakh) with a view to raising revenue through a more egalitarian tax regime. It has also proposed for raising surcharge on net wealth of such high net wealth people/assesses. According to the finance bill 2014, no surcharge will be imposed on people having net wealth below Tk 20 million (2.00 crore). People having net wealth over Tk 20 million but less than Tk 100 million will have to pay 10 per cent surcharge on their payable taxes. Wealthy people having net wealth in between Tk100 million and Tk 200 million have to pay surcharge at 15 per cent while it will be 20 per cent for wealth between Tk 200 million to 300 million. People having net wealth over Tk 300 million have to pay 25 per cent tax, highest of its kind. I feel the government has missed out a major point when contemplating increase of taxes on individual incomes.
The government has failed to review the contribution of these high value income earners that contribute to the national economy. Instead of rewarding these individuals the government is discouraging them by asking them to pay more taxes as if they are criminals and they should be prosecuted.
I am sure the government has failed to understand the impact of such step-motherly treatment being meted out to people who matters for our country and who are declaring their income honestly and paying high taxes. Rather the government should concentrate on roping other high value tax payers who are outside the net of tax department and it should encourage the potential tax payers by offering incentives, awards & rebates. Exemption limit of medical expenses for salaried taxpayers should be more rational considering the market price of medicine, doctor's fees and expenses.
I feel these high earners should be given a rebate on their high income rather than asking them to pay higher taxes for declaring their actual income and paying maximum to the national exchequer!!! It would be worth mentioning that the contribution to the national Exchequer is worth in billions. So why tax them in spite of such huge contribution by these high earners.
I urge our Honorable Finance Minister to please reconsider the decision of alienating bona-fide tax payers in the country who are the backbone of our country's economic growth.

Alihussain Akberali FCA CIP
Chairman, BSRM Group of Companies
Serving the nation since 1952