Advance tax cannot be the minimum tax
In the face of extreme crisis, the government has submitted a budget proposal for the next fiscal year 2020-21. The government deserves praise for presenting the budget in this situation. Just as individuals are being affected by epidemics, so are industries. So our expectation was that in the case of revenue, various concessions would be given in the budget. But the proposed budget did not meet our expectations in some cases.
Individual income tax
The Finance Bill has proposed reduction of income tax for individuals. This analysis shows that those who have an annual income of Rs 4 lakh will save Rs 200 to Rs 1,000 per month. At the top level, if you earn more than Tk 10,000, you will save Tk 500 per month. At that level, the tax rate has been reduced from 30 percent to 25 percent. As a result, those with higher incomes have been given more discounts.
On the other hand, it has been proposed to levy tax on pension fund without government approval. The matter is unfair for two reasons. Employees in the country usually do not have job benefits. Besides, according to the tax policy, the benefits that are available at the end of the job are covered by capital as receipts, not revenue. It is not taxable for him. Now in this proposal the person has to pay double tax.
However, the government's proposal to give a tax rebate of Rs 2,000 when filing tax returns online is certainly to be applauded.
On the other hand, the budget has proposed a big increase in the rate of advance income tax on motor vehicles. The matter is unequal, because in such a weak public transport system in Dhaka city, private cars have become not a mere luxury, they have become necessary. This tax should not be increased, especially for vehicles with a capacity of less than 2,000 cc.
The proposal to whiten the black money may boost the stock market and the real estate sector, but it encourages unscrupulous people.
On the other hand, the proposal to increase excise duty as a bank will discourage depositors. As such, the interest rate on bank deposits is now the lowest in history, at which time the proposal to impose excise duty will discourage deposits.