Income tax collection jumps by 193pc

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The National Board of Revenue (NBR) has recorded a 193 percent rise in income tax collection totalling Tk 739.11 crore in the tax year 2007-08 from Tk 252.11 a year ago.

“We have recorded such a rise mainly because of raising the ceiling of tax-free income. The introduction of Universal Self Assessment has also augmented our tax collection efforts,” NBR Chairman Muhammad Abdul Mazid said in a press briefing yesterday — a day after the deadline to submit individual income tax returns for the current tax year.

The tax administration, which previously extended the date of submission of income tax returns till December 2, said the number of income tax payers has increased by 20 percent as 6,45,617 individuals submitted income tax returns in the 2007-08 tax year compared to 5,35,994 tax payers a year ago.

Referring to Cyclone Sidr, Mazid said the money donated for relief to the ‘Senabahini Tran Tahabil’, the relief fund of the Army, would also be treated as tax-free until December 31, 2007. “We will treat the donation to the fund as tax-free income until December 31, this year.”

Prior to this, the donations made to the Chief Adviser’s Relief Fund have been tax-free.

To ensure small and medium enterprises collect value added tax (VAT) and deposit it to the exchequer, the NBR from November 1 would make it mandatory the use of electronic cash register machines at restaurants, sweetmeat stores, fast food outlets, beauty salons, department and general stores, said the NBR chief.

A total tax of Tk 171.82 was paid by 2,36, 153 persons who submitted their tax returns under the universal assessment system, Mazid said. The NBR introduced the system from current tax year.

According to NBR, 6,783 doctors, 1,641 lawyers and 27,008 bankers submitted tax returns in the 2007-08 tax year and the taxes they paid were Tk 9.73 crore, Tk 2.03 crore and Tk 5.85 crore.

Highest tax was collected in Sylhet where submission of tax returns saw a 49 percent rise with 1,403 percent growth in collection of income tax, according to NBR.

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