House rent payment through bank not now as Muhith backs off

Finance Minister AMA Muhith has said he dropped plans to make house rent payment above Tk 25,000 through banks mandatory because of political pressure.

Speaking to reporters on Monday evening, he said: “Compromises have to be reached on many matters in politics. Same thing has happened here too.”

The minister, however, expressed his conviction that house rent payment would be made mandatory through the banks from the next fiscal year that begins on July 1.

The government had amended the income tax law to ensure house rents were paid through banks from the current financial year but could not enforce it.

Muhith said: “We had made the provision to combat tax-dodge. But the initiative hasn’t got adequate response due to pressure from different quarters. However, it will be made mandatory from the next FY.”

He talked to reporters at his Secretariat office after a meeting with the Assistant British Minister for International Development Lynne Featherstone.

The minister said revenue collection had increased, thanks to government initiatives.

“Our tax-GDP ratio was below 10 percent when we assumed office in 2009. Now it has increased to 13.8 percent,” he added.

Muhith said the size of Bangladesh’s economy had increased, too.

“Now we have to raise revenue collection. The National Board of Revenue is conducting surveys. Different measures will be taken, based on the survey, in the next budget to increase revenue collection.”