Friday, 29 March, 2024, 2:25 PM
Advance Search
Home

Advance Tax on import of some industrial goods may be lowered

Published : Monday, 8 June, 2020 at 12:00 AM  Count : 241

The government may lower advance tax (AT) to 3 or 4 percent from existing 5 percent on import of industrial materials to provide some relief to manufacturers.
The National Board of Revenue (NBR) is expected to introduce a new slab in the AT structure in upcoming budget for 2020-21.
The rate of advance tax (AT), previously known as advance VAT, may be cut as mentioned above and it may also be applicable for other products associated with industrial production and investment from the current 5 per cent, said a finance ministry source.
The overall AT will remain unchanged at 5 per cent on all sorts of commercial products. A number of products which are exempted from payment of customs duty and other taxes may also be exempted from paying AT.
The officials said manufacturers were demanding withdrawal of the AT on import of industrial products, including raw materials and intermediate goods as they blame the high rate was increasing their cost of production.
Advanced Tax, introduced in the budget in last FY20, is refundable but businesses men were claiming that they are facing difficulty in obtaining the refunds due to procedural problems.
In addition to reduction in of AT rate, the NBR will also ease the refund process so that businesses men can get their money back easily. It may also propose a number of reforms in the Value-Added Tax and Supplementary Duty Act-2012 in the budget to be placed in the parliament on June 11.
The NBR imposed the 5 per cent AT on all types of import in the last budget. However, it later waived the AT on import of capital machinery for manufacturers under concessionary duty rates. It also covers import of raw materials for poultry industry, livestock, fisheries, dairy feeds and machinery for feed manufacturers, one-day old chicks, import by bonded warehouse for export-oriented industries and government agencies.
But the tax administration may increase the excise duty on bank accounts with a balance of above Tk 5 crore. Currently, account holders with bank balances, irrespective of whether the balance is debit or credit, exceeding Tk 1 lakh at any time of the year are subjected to excise duty. Account holders with a balance below Tk 1 lakh are exempted from paying indirect tax.
Account holders with a balance of between Tk 1 lakh and Tk 5 lakh have to pay an excise duty of Tk 150 a year and the rate of tax goes up to Tk 25,000 per account for balances exceeding Tk 5 crore any time in a year.









Latest News
Most Read News
Editor : Iqbal Sobhan Chowdhury
Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Online: 41053014; Advertisement: 41053012.
E-mail: info©dailyobserverbd.com, news©dailyobserverbd.com, advertisement©dailyobserverbd.com, For Online Edition: mailobserverbd©gmail.com
  [ABOUT US]     [CONTACT US]   [AD RATE]   Developed & Maintenance by i2soft