Published: Saturday, June 1, 2013

Proposal for Next Budget

More tax on car owners

More tax on car owners

The government in the next fiscal year may impose tax at source on cars with lower capacity engines and 50 percent additional tax at source on ownership of more than one car.
The move aims to discourage sales of personal vehicles to reduce burden on roads choking from perennial traffic jam and boost revenue, an official of National Board of Revenue (NBR) told The Daily Star.
At present, the government deducts tax at source for cars above 1,500 cc during their registration and fitness renewal.
It now plans to impose a tax of Tk 10,000 to Tk 12,000 at source on each private vehicle with the engine capacity ranging between 1,300 cc and 1,500 cc.
Listed mobile operators might also see their corporate tax go up by 5 percentage points when Finance Minister AMA Muhith announces the budget for 2013-14 fiscal year in parliament on June 6.
Presently, listed mobile operators pay a corporate tax at 35 percent, while the non-listed ones pay at 45 percent.
Grameenphone is the lone listed company among the country’s six mobile operators.
“These moves are still at planning stages, which will be finalised after a meeting with the prime minister in the run up to the unveiling of the budget,” the NBR official said.
The tenure of the tax holiday facility to 36 sectors might also be extended in the next fiscal year, but this time it could take a new shape.
The finance minister has already said the tenure of the facility could be extended for another two years.
Sectors entitled to this facility now pay no tax in the first five years of operation, 50 percent in the next three years and 25 percent in the following two years.
But as per the new plan, the sectors will enjoy 100 percent tax holiday in the first two years of operation. From then on, the facility will gradually be lowered every year.
Companies setting up network and providing connections through optical fibre for expanding data connectivity in the country might be entitled to the tax holiday facility.

  • haha

    Great ideas.