Report of tax for over Tk 300,000 in bank without foundation: NBR chairman

NBR Chairman Nojibur Rahman has brushed aside news reports that citizens would have to pay tax for having over Tk 300,000 in banks as ‘rumours’.

The National Board of Revenue chief told bdnews24.com on Monday that no such provision or order had been included in the budget or finance bill proposed by Finance Minister AMA Muhith for the fiscal year 2016-17.

“Panic is being spread over the matter for no reason. Such news is baseless, false,” he said.

Rahman said there was no scope for misunderstanding over the issue, urging all not to get panicky.

“NBR will collect tax regularly from those eligible to pay it following rules for the welfare of the country,” he said.

“It’s right that the number of taxpayers is very low in our country. We have taken steps to raise it, but within the rules.

“No tax will be collected by force,” he added.

Finance Minister Muhith proposed the budget on June 2. A discussion on the budget in Parliament is under way. The budget will be passed on June 30.

After Muhith proposed the budget, rumours that citizens having more than Tk 300,000 deposited in bank would have pay tax on the money spread when some online media outlets published reports on the issue.

A number of readers called bdnews24.com, seeking to clear the matter.

“I don’t understand from where the rumour spread and who spread it. I want to make it clear that no decision or step on the matter was taken in the new budget,” the NBR chief said.

According to the NBR, Bangladesh has 1.2 million taxpayers now. Muhith has expressed his hope of raising the number to 1.5 million in the upcoming fiscal year.

The ceiling of tax-free annual income for individuals has been proposed at a minimum of Tk 250,000 for the 2016-17 fiscal year.

Those eligible for income tax will have to pay 10 percent of up to Tk 400,000 more than the limit, 15 percent of the next Tk 500,000 more, 20 percent of Tk 600,000 more, 25 percent of Tk 3 million more and 30 percent of the rest.

The rates were same in the outgoing 2015-16 fiscal year.

NBR has been collecting minimum 10 percent tax at source on only interest or profit of all kinds of bank deposits since 2012.

Those without Tax Identification Number (TIN) have been paying 15 percent tax at source on interest.

But citizens do not have to pay any tax on the basic deposit.

“This provision of the 2012 Finance Bill is still in effect. No change has been brought about in the new budget,” the NBR chief clarified.