Tk 7.0b in additional revenue to come from cigarette industry
Doulot Akter Mala | Thursday, 12 June 2008
The National Board of Revenue (NBR) has estimated the Value Added Tax (VAT) collection to increase by about Tk 30.12 billion in the upcoming fiscal due to expansion of tax net in the proposed budget.
VAT collection target for upcoming fiscal has been set at Tk 183.54 billion after calculating a 21.46 per cent growth on the revised target of Tk 151.11 billion for 2007-08.
In its initial estimation, the revenue board targeted an additional Tk 30.68 billion VAT from different sectors including collection of arrear revenue. The NBR will lose about Tk 560 million because of VAT waiver proposed for six sectors.
The finance adviser in the budget proposal has exempted a number of sectors from VAT net while included others in order to achieve the target.
The government has proposed for increasing tax rate on cigarette and re-adjust supplementary duty in a higher slab. From this readjustment in duty and VAT at local stage the government will collect an additional revenue of Tk 7.0 billion in the coming fiscal.
In the budget speech, the finance adviser proposed to impose supplementary duty at the rate of 60 per cent on raw materials for cigarette manufacturing and 20 percent on the paper products used for cigarette packaging.
He also proposed to bring manufacturing of scented tobacco (Jarda) and burnt tobacco (Gul) preparations under the purview of VAT irrespective of their turnover.
By imposing VAT on import stage of raw silk, the NBR eyed Tk 10 million in VAT, Tk 50 million from children's picture, drawing or colour books, Tk 300 million from repairing and servicing companies, Tk 31.5 million from tobacco, gul and Tk 10 million from tariff readjustment of bus body building and fixing services.
The VAT department estimated Tk 45 million tax at source from product servicing and repairing organisations, security service providers and engineering firms.
VAT collection target for upcoming fiscal has been set at Tk 183.54 billion after calculating a 21.46 per cent growth on the revised target of Tk 151.11 billion for 2007-08.
In its initial estimation, the revenue board targeted an additional Tk 30.68 billion VAT from different sectors including collection of arrear revenue. The NBR will lose about Tk 560 million because of VAT waiver proposed for six sectors.
The finance adviser in the budget proposal has exempted a number of sectors from VAT net while included others in order to achieve the target.
The government has proposed for increasing tax rate on cigarette and re-adjust supplementary duty in a higher slab. From this readjustment in duty and VAT at local stage the government will collect an additional revenue of Tk 7.0 billion in the coming fiscal.
In the budget speech, the finance adviser proposed to impose supplementary duty at the rate of 60 per cent on raw materials for cigarette manufacturing and 20 percent on the paper products used for cigarette packaging.
He also proposed to bring manufacturing of scented tobacco (Jarda) and burnt tobacco (Gul) preparations under the purview of VAT irrespective of their turnover.
By imposing VAT on import stage of raw silk, the NBR eyed Tk 10 million in VAT, Tk 50 million from children's picture, drawing or colour books, Tk 300 million from repairing and servicing companies, Tk 31.5 million from tobacco, gul and Tk 10 million from tariff readjustment of bus body building and fixing services.
The VAT department estimated Tk 45 million tax at source from product servicing and repairing organisations, security service providers and engineering firms.