A file photo shows high-rise apartment blocks in Dhaka. Wealth surcharge collection by National Board of Revenue from well-off people increased by 15.11 per cent to Tk 446.14 crore in the fiscal year 2017-2018 compared with that of in 2016-2017. — New Age photo
Wealth surcharge collection by National Board of Revenue from well-off people increased by 15.11 per cent to Tk 446.14 crore in the fiscal year 2017-2018 compared with that of in 2016-2017.
Some 11,700 rich people paid Tk 387.58 crore in wealth surcharge, commonly known as wealth tax, in FY 2016-2017.
Although NBR is yet to ascertain the total number of rich people who paid wealth surcharge on their net asset above Tk 2.25 crore across the country in FY18, it calculated that the total collection stood Tk 446.14 crore, said officials.
The number of well-off people may reach to more than 13,000 in FY18 in line with the trend in the previous fiscal years, officials said.
According to NBR data, in FY18 the highest amount of wealth tax was paid at Tk 107.74 crore by taxpayers under the large taxpayers’ unit where 706 directors of 281 large business entities, including banks, insurance, telecom, pharmaceuticals, and cement and manufacturing firms, filed their income tax returns.
They paid Tk 80.39 crore in wealth surcharge in FY 2017.
NBR received second highest wealth surcharge worth Tk 33.26 crore from taxpayers under income tax zone 3 in Dhaka followed by Tk 31.77 crore from taxpayers under tax zone 8 in Dhaka, Tk 31.57 crore in Chattogram and Tk 31.43 crore from taxpayers in tax zone 2 in Dhaka.
Officials of NBR said that they collected wealth surcharge at various rates on net value of assets shown in the income tax returns.
Actual number of well-off people in the country will be much higher as NBR never updated the value of assets into the current market prices, they said.
Taxpayers always show the value of assets in purchase value while they also do not show the value of inheritance assets as there is no option of converting the assets in market value, they added.
NBR, first in FY 2011-2012, introduced wealth surcharge in the country as part of the plan to impose tax on assets.
Surcharge is collected at the rates set by the government in the national budget on the total value of wealth excluding exemption limit.
The well-off having net assets worth above Tk 2.25 crore have to pay the tax ranging from 10 per cent to 30 per cent of the payable income tax based on their net assets shown in their income tax returns.
The highest 30 per cent surcharge is applicable on assets worth above Tk 20 crore.
Wealthy people need to pay at least Tk 3,000 as minimum surcharge.
They said that many wealthy people also concealed the actual prices of their assets to escape wealth surcharge.
The number of rich people has also been increasing in the country in line with robust economic growth taking place over the few years, a senior NBR official said.
‘The number of rich people is unusually and unrealistically low if we take the luxurious life style in posh urban areas and bank accounts having savings above Tk 1 crore into account,’ he said.
Many people also show lower prices of assets and higher liabilities in their income tax returns as the surcharge is collected on net assets after excluding the total liabilities from the total assets, he said.
The deed values of assets, particularly land and apartments, shown in their returns are unrealistically lower compared with the actual market prices, he added.
According to NBR data, in FY 2016, a total of 10,926 rich people paid Tk 302 crore in wealth tax.
In FY 2015, the number of rich people was 10,152 and the amount of wealth surcharge collected based on their income tax returns was Tk 208.39 crore.
Source: New Age.
