Source tax will be rationalised in next budget: NBR chairman
"One section of the country's population will pay tax, while the rest get a waiver – this will no longer happen,” he said
Highlights:
- Source tax to be rationalised as much as possible
- Govt already reduced duty on commodities poor people need the most
- Businessmen urge govt to expand tax coverage without increasing tax rate
Source tax will be rationalised as much as possible in the next budget, National Board of Revenue (NBR) Chairman Abdur Rahman Khan said today (29 January).
"During the previous government's tenure, the finance ministry imposed 40% more source tax than the previous year, which created pressure on the actual taxpayers. One section of the country's population will pay tax, while the rest get a waiver – this will no longer happen," he said.
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Taxpayers are our hens. If you try to take out all the eggs at once, the hen will die.
Speaking at a roundtable discussion titled "Challenges and Prospects of Digital Transactions: VAT Increase Perspective", organised in Dhaka by Prothom Alo, he also emphasised the burden on buyers instead of sellers.
"We get VAT from several places, such as manufacturing, tobacco, etc. However, when you go to the market, you won't feel like there is anything called VAT in our country. Due to which, pressure is created on the real taxpayers of our country.
"Taxpayers are our hens. If you try to take out all the eggs at once, the hen will die," he also said.
Abdur said the government has reduced the duty on the items that the poor people need the most, such as rice, lentil and oil.
He further said, "A 10% VAT has to be paid on branded products, while 7% on non-branded ones. This is not discrimination; a slightly higher VAT has been imposed because those who use branded products have a higher purchasing power."
At the event, businessmen urged the government to expand the tax coverage without increasing the tax rate.
In response, the NBR chairman said, "We will see a big change in the next budget. However, for this, businessmen will have to emphasise transparency. If taxes are imposed on them, they will have to pay it."
