Investments in productive sectors allowed, land purchase excluded; 10pc import duty for newsprint
The government has provided scope for legalisation of undisclosed money through investment in productive sectors, but withdrawn its proposal for allowing money whitening through purchase of land.
Besides, it has revised its proposal for hiking import duty on newsprint from 3 percent to 25 percent, apart from 5 percent supplementary duty. Now, it will impose 10 percent import duty on newsprint.
Shifting from its proposal for raising import duty on printing plates used in the newspaper industry to 5 percent, it has lowered the duty to 2 percent from the existing 3 percent.
The government has brought down supplementary duty on bidi and package VAT (Value Added Tax) for small traders.
In the proposed budget for fiscal 2013-14, it was suggested that a person would be allowed to whiten money by purchasing a flat or a plot of land provided he paid a certain amount of tax.
The government has now decided to give the facility only in case of purchase of flats, because if the scope is given in buying land it will push up land prices and encourage expenditure in unproductive sectors, Finance Minister AMA Muhith said in parliament which yesterday passed the finance bill amid boycott by the opposition.
In the outgoing fiscal year, scope was given to people to whiten money by paying an additional 10 percent tax along with the normal tax. However, the National Board of Revenue had the authority to question the source of the undisclosed money.
As part of efforts to encourage investment, a provision has been introduced to the effect that no question will be raised about the source of the money if it is invested in industries and other productive sectors.
The package VAT on small traders and shopkeepers will come down by Tk 1,000 from what had been proposed earlier.
With the aim of ensuring fire safety in garment industries, import duty on fire safety equipment has been lowered to 5 percent from the existing 10 to 15 percent.
The government has also withdrawn the proposal for an increase in supplementary duty on bidi by 10 and 5 percent depending on the number of sticks in each packet.
Supplementary duty of 100, 30 and 60 percent has been slapped on imported biscuits, woven fabrics, and hair care products.
Hybrid cars up to 1800cc have been kept outside the purview of supplementary duty, while in the outgoing fiscal year, hybrid cars up to 2500cc were free from the duty.
The government has also retained VAT waiver on plastic and aluminium utensils and household items, though it had earlier proposed withdrawing the waiver.
Source: The Daily Star
I have three points may have rethinking: 1. undisclosed money. the word may be palatable to some one who are active have their two hands move freely. the old and inactive one not earning. they are depending on their past saving. It is so scanty for their survival under blazing kitchen market.
2. import tax on newsprint. I have nothing in favor or against import tax but would like to know how long this reduced tax for news print will remain in vogue. Newsprint wood pulp plantation under world bank loan was established over depleted hilly barren land by government was supposed to begin harvesting from 2013 sequentially over next 20 years. On mid way decision came to eliminate newsprint wood – Eucalyptus under probably some pressure group. so eliminated without confirming the plea. The pressure group’s information had no research back up. It seems decision was not wise. It is unfortunate to see that we are talking of import tax subsidy but not talking on availing scope of growing newsprint pulp at home.
3. In a budget discussion, environmental value has not been visible. If we want to ameliorate our already sick environment and to achieve sustainable economy, we need to grow awareness in our people. Environment in budget discussion is important.