Some small changes are being made in the Income Tax Ordinance in the budget of the next 2021-22 financial year. These changes will further increase the suffering of the taxpayers. It can also increase the tax burden on them. In the new budget, the investment limit of tax rebates may be reduced. Failure to submit the annual income tax return may result in closure of the opportunity to avail various services including vehicle fitness renewal and registration. Again, advance tax may be levied on the import of fruits and vegetables. On the other hand, along with VAT returns, submission of financial statements is also being made mandatory.
First of all, let’s see what kind of sword is coming down in this year’s budget for individual taxpayers. At present, there are about 72 lakh Tax Identification Numbers (TINs) in the country. Credit card holders and those who sell land are not required to file a return even if they do not have taxable income. Everyone else’s return is mandatory. According to NBR sources, an average of 2.5 million taxpayers file returns every year. 10-12 lakh taxpayers take TIN just to get credit card and sell land. The remaining 25 lakh have TIN holders but do not give annual return. They are non-filers in the language of the NBR. The NBR will be in a tough position for these TIN holders to give returns, an announcement will be made in the budget speech of the finance minister. This time the amount of fine may also increase.
Previously, only TIN certificate was required to renew and register the fitness of the vehicle as well as to participate in the tender of the contractor. Receipts of return deposits may also be made mandatory in the next budget to avail these government services.
If a taxpayer invests a portion of his income in certain government-determined sectors (such as savings certificates, stock market, provident fund, FDR, etc.), he gets an investment tax rebate. According to him, a taxpayer can now invest 25 per cent of his income or a maximum of Rs 1.5 crore. In the next budget, this investment limit may be reduced to Tk 1 crore. This will reduce the investment opportunities of wealthy taxpayers. At present, the rate of investment tax rebate is 15 per cent for income up to Tk 15 lakh and 10 per cent for income above Tk 15 lakh.
The next budget may be more uncomfortable for the wealthy big man. Because, the level of surcharge is being rearranged. A level is being reduced. The new level of surcharge may be like this কোনো no surcharge of up to Rs 3 crore has to be paid; 10 per cent from three crore to five crore rupees; 15 per cent from Rs 5 crore to Rs 10 crore; 10 crore to 20 crore to 20 per cent; 20 to 50 crore to 30 per cent and more than 50 crore to 35 per cent surcharge. At present, if the assets are more than Tk 20 crore, 30 percent surcharge has to be paid on 30 percent income tax. This time, surcharges may be levied on the very rich, i.e. those with more than Rs 50 crore.
The next budget could bring bad news for big fish farmers. At present, if the income from this sector is more than Tk 20 lakh, 10 percent tax is levied. In the new budget, fish farmers who earn 20 to 30 lakh rupees will be given 10 percent tax. But if the income is more than 3 million rupees per year, 15 percent tax will be imposed. However, no tax has to be paid on the first 10 lakh rupees income in this sector. Income from 10 to 20 lakh rupees will be taxed at 5 percent as before.
The cost of importing foreign fruits and vegetables may increase. The country now imports a variety of fancy exotic vegetables, including chukoli, asparagus, cherry tomatoes, colorful capsicum, and cereals. These vegetables are now available in various supermarkets in the capital. There is no advance tax on the import of such vegetables. According to the finance ministry, up to 5 per cent advance income tax may be imposed on the import of such vegetables in the next budget.
A variety of foreign juicy fruits are now available in the capital market. In addition to supermarkets, foreign apples, pears, oranges, malts as well as various varieties of watermelons, hammams, dragons, strawberries, blueberries and blackberries are available in the wholesale market. No advance tax was levied on the import of these varied fruits for so long. Up to 5 per cent advance tax may be proposed in the next budget.
Bad news can come for VAT payers. Par can not be obtained with VAT return only per month. Currently there is no obligation of financial statements. The budget for the next financial year may be amended in this regard. Submission of one year financial report to the VAT office within six months may be made mandatory