NBR directed to identify businessmen outside income tax net: Finance adviser
The government has directed the National Board of Revenue (NBR) to conduct a survey to identify businesses currently outside the income tax net, Finance Adviser Salehuddin Ahmed said today (7 January).
The initiative is part of the government's plan to expand income tax coverage, he told journalists after a meeting of the Advisers' Council Committee on Government Purchase at the Secretariat.
Following decisions to raise VAT in some sectors, there have been discussions about expanding the income tax net.
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Asked about the government's stance on this, the adviser said, "We will rationalise income tax. Those who have the ability to pay must pay the same rate. If anyone tries to evade taxes through manipulation, it should not be allowed.
"We need to increase our tax collection. We will expand the income tax net, but we can't do so drastically," he added.
Salehuddin further stated that there are many businesses that do not have VAT registration and do not pay income tax.
"I have told the NBR to conduct a quick survey. For example, in a local grocery store, you will see a lot of money being earned.
"For those who have not had business opportunities in the past due to the lack of a level playing field, we will encourage them."
In response to another question regarding reserves, Salehuddin said, "If we hadn't taken action, our reserves wouldn't have reached $22 billion. Before we [the interim government] took charge, there was a backlog of $4.5 billion, which would not have been paid off."
When asked if he is satisfied with the current rate of inflation, he said, "Inflation has declined by 1%. If the trend continues, we expect a further decrease."
Govt won't change any duty structure until Ramadan ends
Salehuddin said the government would not change any duty structure until the end of Ramadan.
"If we change the duty structure, then there might be a crisis to some extent. If we also change the policy structure, then there might be some problems. But, a message has already been given that until Ramadan ends, there will be no changes in the structure," he added.
About the rising trend of price hike in rice, he said the price of rice in one specific item has increased, but the prices of the rest of the items on the whole have not increased.
He said the reason for this is that the domestic harvest is yet to finish fully side by side to some extent due to the supply chain.
"So, we're considering the matter so that the price of rice does not increase anymore," the adviser said, adding that they have also discussed it with the Ministry of Food and the adviser concerned.
Salehuddin said they have also suggested the Ministry of Food to import rice from anywhere they can.
"If necessary special OMS can be rolled out," he added.
Regarding the government's preparations on the essential items ahead of Ramadan, he said lentils have been imported and procured while the supply of soybean oil has also become stable and tolerable.
"If necessary, we can import those items again so that people could avail those and there is no such crisis regarding availability of these items."
The finance adviser said the government would have to further strengthen market monitoring.
He said the government's main principle is that the margin between the production cost at farmers' level and the selling price at the consumer level does not become so big.
Govt to procure 1 cargo LNG, 50,000 MTs non-basmati boiled rice
The government today approved separate proposals for procuring one cargo LNG and some 50,000 metric tonnes of non-Basmati boiled rice to meet the growing demand of the country.
Following a proposal from the Energy and Mineral Resources Division, the Petrobangla would procure one cargo LNG from the spot market through international quotation from M/S Excelerate Energy, LP, United States, at around Tk752.5 crore with per MMBtu LNG costing $15.69.
In response to another proposal from the Ministry of Food, the government would purchase 50,000 metric tonnes of non-Basmati boiled rice from M/S Bagadiya Brothers Private Ltd in India for about Tk275.3 crore where per tonne rice would cost $458.84.
