The National Board of Revenue or NBR is set to increase tax on private car owners and the import of onion in the budget for the upcoming fiscal year.
It may also offer a string of tax-break facilities to the manufacturing sector to help build local capacity of import-substitute industry during the coronavirus pandemic, people familiar with the development said.
Finance minister AHM Mustafa Kamal is likely to propose the changes of fiscal measures in parliament while placing the budget for FY 2020-21.
Advance income tax on private car or jeep owners, up to 1500 CC, may go up to Tk 25,000 from the existing Tk 15,000.
Manufacturers of electrical transformer, artificial fibre or man-made fibre, automobile parts and components, automation and robotics design with its parts and components, artificial intelligence-based system design or manufacturing, nanotechnology-based products, aircraft heavy maintenance services with its parts might enjoy tax holiday in the next financial year.
The NBR may impose 5.0 per cent customs duty on the import of onion to protect local producers, officials said. Currently, there is no tax on import of key cooking ingredient.
Import of finished mobile phone might be costlier as the NBR may impose higher tax on it.
Imported honey would also be dearer in the upcoming fiscal, with the revenue board considering slapping as much as 25 per cent duty on its imports.
Owners of private car or jeep above 1500CC up to 2000 CC may have to pay Tk 50,000 tax at the time of fitness renewal or registration in a year.
Tax would be slapped at Tk 75,000 for having car or jeep above 2000 CC to up to 2500 CC.
For having private car or jeep above 2500CC to up to 3000 CC, tax might be imposed at Tk 125,000.
For car ranging above 3000 CC to 3500CC, the owners have to pay Tk 150,000 tax while for cars above 3500CC the levy might go to Tk 200,000.
Advance income tax for microbus might be set at Tk 30,000.
As per the Income Tax Ordinance-1984, the advance tax for private cars is adjustable with the actual payable during return submission.
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