The government has taken measures like tax exemption on importing food items, allocation of Tk 350 crore for agriculture research and alternative marketing to prevent price hike, the finance adviser said at a post-budget press conference at the National Economic Council.

As part of the government's steps, Bangladesh Rifles is working and the government is planning to introduce more mechanism to keep the prices of essentials at a tolerable level, he said.

Responding to suggestions from different stakeholders tariff structure has been changed in some cases, he said.

He said despite slight reduction of the profit by the local producers, they will not be losers as a whole and the new tariff structure will not discourage the investors.

Replying to a query about the increase of salary of government officials, the adviser said lack of moral values rather than insolvency leads one to become corrupt.

Admitting huge gap between the salaries in private and government sectors, he said the government will consider formulating permanent pay commission in future.

When journalists asked him about low response to the NBR's offer to whiten undisclosed money, the adviser said it will be wrong to think that one will fall into a trap by paying tax.

The government has slightly changed the tariff structure on textile machinery, computer, powder milk, newsprint, mobile set and income tax slab in the budget for FY 2007-08, Badiur Rahman, chairman of National Board of Revenue (NBR), said at the press conference.

The import duties on textile capital machinery has been reduced from proposed 10 per cent to 5 per cent for FY 2007-08, the NBR chairman said

The exemption limit of income tax for an individual has remained unchanged to Tk 1.50 lakh. But the minimum income tax has increased from proposed Tk1800 to Tk2000 in the final budget of the FY 2007-08.

Besides, there are changes in slabs for those in the high-income brackets. The income tax bracket of Tk 2.5 lakh increased to Tk 2.75lakh, whereas persons of the slab will have to pay 10 per cent taxes.

The income tax bracket of proposed Tk 3 lakh increased to 3.25 lakh and the proposed bracket of Tk 3.5 lakh increased to Tk 3.75 lakh. The taxpayers of these brackets will have to pay 15 per cent and 20 per cent taxes.

Rest of the high-income people earning over Tk 3.75 lakh will belong to the highest tax slab to pay 25 per cent.

The government exempted import duties on newsprint only for newspaper uses. The newspaper owners can enjoy zero tariff in importing newsprint following quotas of information ministry.

But commercial importers will have to pay duties as per government's structure in the final budget.

The proposed 10 per cent duty on computer changed to 5 per cent in the final budget.

But as the 4 per cent infrastructure development surcharge has been removed, the total duty on computer accessories will stand 1 per cent.

Import duty on milk powder (bulk) reduced to 15 per cent from earlier proposed 25 per cent.

The government has increased taxes on mobile phone set import from Tk100 to Tk 300, which was Tk 500 in the proposed budget.

The private universities have been kept out of the value added tax (VAT) net.

Three is a probability to reduce tax earnings following the new tax structure, said the NBR chairman.

He, however, said the recent measures taken by the NBR such as reduction of discretionary power of the tax officials, introduction of taxpayers self-assessment system and uniform tax identification number will help to earn more revenues.

He said the NBR's recent move to bring more people under the tax net received huge response and 1800 taxpayers have been included in the tax net due to the recent drive in Dhaka city.

The NBR chairman said the board has decided to expand its drive phase by phase all over the country and 20 teams will be deployed from today in eight cities outside the capital to bring more taxpayers under the tax net. The move will continue till December 2007.

According to new duty slabs for the budget 2007-08, a total of 211 products (HS lines) will enjoy zero tariff while the number was 510 in the last budget.

A total of 1804 products (HS lines) will be kept in 10 per cent duty slab, 1703 products in 15 per cent and 2659 products in 25 per cent duty slab.

Replying to the reporters' question, secretary to the information ministry said they have discussed the matter of new wage board with the journalists and newspaper employees and it will be finalised after discussion with the owners.