In the proposed budget for the next financial year, a net of revenue has been laid in search of taxpayers. Adding several new clauses to the bill, which was raised in Parliament last Thursday, will require mandatory ETINs (online taxpayer identification numbers) for 40 types of work for the general public from July 1 to June 30 next year.
Economic analysts say that in order to get an ETIN, one has to keep other information, including the number of the national identity card, in the database of the National Board of Revenue (NBR). Even if there is no taxable income, the ETI holder has to submit a return. And thus a person of ordinary income is getting caught in the revenue net of NBR.
For the first time in the history of the country, the proposed money bill has forced people of the third sex to accept ETIN. In order to approve the design of a house of any value, one must also take ETIN to buy savings certificates worth more than two lakh rupees. ETIN has been made compulsory even for cooperative societies.
However, for fear of losing taxpayers, Finance Minister AHM Mustafa Kamal did not waive the tax-free income limit for ordinary people affected by the financial crisis. Income up to Tk 3 lakh has been kept tax free as in the current financial year (2020-21). In other words, if you earn more than three lakh rupees per year or more than 25 thousand rupees per month, tax will be levied. This time the latest rate has been increased by reducing the slab of surcharge. This has increased the tax rate for the rich to have extra wealth. Despite strong objections, higher taxes have been imposed on car owners. Penalties for using fake or forged documents to pay revenue have been tightened.
The proposed bill also calls for 20 per cent supplementary duty on imports of frozen shrimp, fish pieces, powdered milk (2.5 kg), butter, cold tomatoes, fresh or dried grapes, oranges, mangoes and lemons.
ETIN: Adding some clauses to the proposed budget for the next financial year (2021-22) includes savings certificates, post office savings scheme, house design approval, registration of co-operative societies, opening of bank accounts and getting bank loans if the actual income of third sex is more than Rs 350,000. Compulsory ETIN is required to obtain a passport (if you are over 18 years of age), to collect documents related to foreign travel, to buy a house, flat or land, to buy a car and to renew related documents, to obtain or renew a license for any business. Compulsory ETIN will also be required to take various utility connections including home gas, electricity and to participate in any state-run elections including Jatiya Sangsad, Municipalities, City Corporations, construction of hotels and restaurants, setting up of new industries, contracting business.
Apart from this, ETIN has to be shown in any purchase including gold, pearls or valuable jewelery worth more than Tk 3 lakh at a time. ETIN must be submitted to join a high paying job. Those who bear the cost of teaching students through English will have to submit ETIN.
Surcharge: Wealthy people have to pay a kind of tax called surcharge as additional tax as they have more wealth. The proposed budget for the next financial year has changed the rate of surcharge by changing the slab of surcharge. If you have assets up to three crore rupees, you will not have to pay surcharge. In case of assets ranging from Tk 3 crore to 10 crore, the owners of assets above 10 crore, 20 crore to 20 crore, 20 crore to 50 crore, 30 per cent and those with assets above Tk 50 crore will have to pay a surcharge of 35 per cent on income tax.
Car tax: In the next financial year, the advance tax rate for the engine capacity of the car and the model of the car is the same as the previous year. Pursuant to Section 6B of the Income Tax Ordinance, the Bangladesh Road Transport Authority (BRTA) collects advance income tax from the owners of private vehicles under section 1974 for vehicle registration or annual fitness renewal. From July 1, it has been proposed to fix an advance tax of Tk 25,000 per year for 1500 cc vehicles, Tk 50,000 for 1500 cc to 2000 cc engine capacity and Tk 75,000 for 2,000 to 2,500 cc vehicles. It has been proposed to levy advance tax of Tk 125,000 for vehicles of 2,500 cc to 3,000 cc and Tk 150,000 for vehicles of 3,000 to 3,500 cc and more than Tk 200,000. Although there was a strong request to reduce the rate of advance tax, it was not heeded.
Punishment for making counterfeit or counterfeit paper: The proposed money bill states that if a person uses counterfeit or counterfeit business identification number, forged or forged credit notes, debit notes, source tax deduction certificate or in any other way evades tax There will be a fine equal to one year imprisonment or tax payable or both.