Welcome to Business Outlook
Related Articles
The National Board of Revenue (NBR) is likely to impose a higher rate of tax on income from fish farming in the next budget if the earnings exceed a certain ceiling, officials said.
The government is considering imposition of the tax at a rate of 15 per cent from FY 2021-22 if the income exceeds Tk 3.0 million following the abuse of the facility.
Currently, the income up to Tk 1.0 million is tax-free while the NBR imposes the tax at the rate of 5.0 per cent on the next Tk 1.0 million and at 10 per cent on the amounts above that.
Officials said the first two slabs and tax rates may remain unchanged in the upcoming fiscal year (FY).
They said that a section of influential quarters had been evading taxes since 2015, taking the advantage of the reduced rate. Many politicians, law makers and others started owning fish farms to exploit the opportunity.
Sensing huge tax evasion by showing income from fish farming in the tax returns, the Anti-Corruption Commission (ACC) had earlier requested the taxmen to look into the sector.
Officials said they were unlikely to change the tax exemption ceiling or minimum tax rate of 5.0 per cent, considering the interest of the small fish farmers as the government wants to encourage them.
However, the NBR may introduce a new slab of Tk 1.0 million after the first Tk 2.0 million and propose 10 per cent tax on it.
Meanwhile, in the Finance Bill-2021, the government may also offer the tax holiday facility for 10 years on income from new investment in agro-processing, fruit processing, milk and dairy production, and agriculture machinery production.
The tax benefit might be offered on income for the first 10 years of commercial production if investment made between July 1, 2021 and June 30, 2030.
The finance ministry officials said they were preparing the tax measures to bring the well-off section of people under the tax-net, aimed at minimising the income inequality.
The ceiling of wealth surcharge might be rationalised in the budget to collect more taxes from the rich people, they added.
(FE)
