Dhaka, Fri, Oct 2017

Economy

Muhith rigid over excise duty on bank accounts

Scope there for discussions on uniform VAT rate, he says

06 June 2017,Tuesday, 23:07



Reaffirming his stance over keeping unchanged the proposed excise duty on bank accounts, Finance minister AMA Muhith on Tuesday said there is nothing new in it as it has been increased slightly.

"The excise duty was introduced long ago and the bank account holders have been paying it accordingly. It's not new but has been increased slightly," he said.

The Finance Minister said this while talking to reporters after launching the foreign aid management system (FAMS) application software programme organised by Economic Relations Division (ERD) at the NEC auditorium in the city, UNB reports.

Muhith, however, said there is a scope to discuss about the uniform rate of Value Added Tax (VAT) during the general discussion on the proposed budget in Parliament.

The Finance Minister hinted at reshuffle of the proposed uniform VAT rate as it triggered widespread criticisms after placing his budget in the House on June 1.

After discussions, a decision will be taken on June 29, he said adding, "The uniform VAT rate is my budget proposal, discussion will be held on it," he said.

In his budget speech, the Finance Minister proposed a hike in excise duty on bank accounts and airline tickets. He proposed raising the excise duty of Tk 500 to Tk 800 on accounts with balance of over Tk 1 lakh and below Tk 10 lakh.

According to the Finance Minister's proposal, Tk 2,500 will be imposed instead of the existing Tk 1,500 where the balance exceeds Tk 10 lakh but does not exceed Tk 1crore; Tk 12,000 will be imposed instead of the existing Tk 7,500 in cases where the balance exceeds Tk 1 crore but does not exceed the limit of Tk 5 crore; and Tk 25,000 will be imposed, instead of the existing Tk 15,000, where the balance exceeds Tk 5 crore.

Besides, Muhith is also under pressure form different sections of society following the imposition of a uniform rate of VAT in the proposed budget. It is being feared that it is the middleclass that will bear the brunt of severe inflationary pressures.

According to the proposal, the consumers will have to pay VAT on their electricity bills and LP gas, and on jewellery products, local brands of readymade garments, mineral water, furniture, courier services, air-conditioned restaurants and tea. VAT has also been imposed on construction firms and motor workshops.

Common people will have to pay 15 percent on electricity bills for domestic usage. It would affect their lifestyles and also impact commodity prices.

The proposal said traders would not have to pay VAT under transactions of Tk 36 lakh every year.

However, the proposal exempts the imposition of VAT on agricultural products, basic food items and house rent.

Earlier, the Finance Minister inaugurated the FAMS, a web application software which establishes online connectivity primarily between Economic Relations Division (ERD) and foreign aided projects.

Planning Minister AHM Mustafa Kamal, State Minister for Finance and Planning MA Mannan, State Minister for ICT Junaid Ahmed Palak, and additional secretary of ERD (FABA wing) Farida Nasrin spoke the programme presided over by acting ERD secretary Kazi Shofiqul Azam.Reaffirming his stance over keeping unchanged the proposed excise duty on bank accounts, Finance minister AMA Muhith on Tuesday said there is nothing new in it as it has been increased slightly.

"The excise duty was introduced long ago and the bank account holders have been paying it accordingly. It's not new but has been increased slightly," he said.

The Finance Minister said this while talking to reporters after launching the foreign aid management system (FAMS) application software programme organised by Economic Relations Division (ERD) at the NEC auditorium in the city.

Muhith, however, said there is a scope to discuss about the uniform rate of Value Added Tax (VAT) during the general discussion on the proposed budget in Parliament.

The Finance Minister hinted at reshuffle of the proposed uniform VAT rate as it triggered widespread criticisms after placing his budget in the House on June 1.

After discussions, a decision will be taken on June 29, he said adding, "The uniform VAT rate is my budget proposal, discussion will be held on it," he said.

In his budget speech, the Finance Minister proposed a hike in excise duty on bank accounts and airline tickets. He proposed raising the excise duty of Tk 500 to Tk 800 on accounts with balance of over Tk 1 lakh and below Tk 10 lakh.

According to the Finance Minister's proposal, Tk 2,500 will be imposed instead of the existing Tk 1,500 where the balance exceeds Tk 10 lakh but does not exceed Tk 1crore; Tk 12,000 will be imposed instead of the existing Tk 7,500 in cases where the balance exceeds Tk 1 crore but does not exceed the limit of Tk 5 crore; and Tk 25,000 will be imposed, instead of the existing Tk 15,000, where the balance exceeds Tk 5 crore.

Besides, Muhith is also under pressure form different sections of society following the imposition of a uniform rate of VAT in the proposed budget. It is being feared that it is the middleclass that will bear the brunt of severe inflationary pressures.

According to the proposal, the consumers will have to pay VAT on their electricity bills and LP gas, and on jewellery products, local brands of readymade garments, mineral water, furniture, courier services, air-conditioned restaurants and tea. VAT has also been imposed on construction firms and motor workshops.

Common people will have to pay 15 percent on electricity bills for domestic usage. It would affect their lifestyles and also impact commodity prices.

The proposal said traders would not have to pay VAT under transactions of Tk 36 lakh every year.

However, the proposal exempts the imposition of VAT on agricultural products, basic food items and house rent.

Earlier, the Finance Minister inaugurated the FAMS, a web application software which establishes online connectivity primarily between Economic Relations Division (ERD) and foreign aided projects.

Planning Minister AHM Mustafa Kamal, State Minister for Finance and Planning MA Mannan, State Minister for ICT Junaid Ahmed Palak, and additional secretary of ERD (FABA wing) Farida Nasrin spoke the programme presided over by acting ERD secretary Kazi Shofiqul Azam.

 

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