Tax lawyers demand increase in tax-free income ceiling

Leaders of the Bangladesh Tax Lawyers Association on Tuesday proposed that the National Board of Revenue should raise the ceiling of tax-free income to Tk 3 lakh from Tk 1,65,000 and increase the rate of tax on income exceeding the proposed ceiling.

BTLA leaders placed a set of proposals in a pre-budget meeting at the NBR office. The meeting was presided over by NBR chairman Nasiruddin Ahmed.

The association proposed a multi-layer income tax structure, suggesting 7.5 per cent tax for income of Tk 3 lakh above the proposed ceiling, 15 per cent for the next Tk 3 lakh, 25 per cent for the next Tk 5 lakh, 35 per cent for the next Tk 5 lakh and 40 per cent for more than that.   

BTLA secretary general Kamrul Alam Chowdhury said the government should reduce the value added tax from 15 per cent to 5 per cent.

Kamrul said the increase of direct tax would reduce accumulation of black money as well as purchasing power of a section of people. A decreased purchasing power of the section of people would check the rising inflation, he said.

He suggested that the gain tax on selling of land and other property be increased to 2 per cent in the rural areas and 5 per cent in the urban areas from existing 1 per cent and 2 per cent respectively.

The professional body suggested that by reducing tax at a considerable rate the NBR should attract the undisclosed but legally earned money to be invested in mass employment generating industry.

The BTLA demanded that the NBR withdraw the provision of imposing 5 per cent tax enforced by the clause 158 (2) of Income Tax Law in case of submitting second appeal as it is inhuman and contradictory to people welfare law.

The lawyers urged the NBR to withdraw the provision of imposing value added tax on the services provided by the lawyers. The government reinstated the suspended provision by the finance bill in 2007.

NBR income policy member Aminur Rahman, first secretary Apurba Kanti Das, BTLA president Golam Sarwar, former presidents Abdul Mazid and Abdullah Shahadat Khan, and for secretary general Gias Uddin Chowdhury were present in the meeting.

Source: New Age