Muhith says he is not levying new tax in 2019 national budget

AMA Muhith has said the government is not levying any new tax in the upcoming national budget to be presented a few months before the general elections.

The finance minister revealed the ‘good news’ to reporters at the Secretariat on Monday as he is proposing the budget in parliament for the 2018-19 fiscal year on Thursday.

“The good news is there is a very limited increase in tax rates. Happiest things for the people, that’s all,” he said.

He also said they were not changing the tax slabs like in the previous budget.

“Many countries don’t change it. It’s already very high. I don’t see any reason to raise it time and again,” he said. 

Muhith earlier said he was planning a budget of over Tk 4.5 trillion for the next financial year.

On Monday, he said he was banking on the increased number of taxpayers instead of imposing new taxes to meet the revenue target.

“We targeted 1.5 to 2 million citizens to submit tax returns. But the number has already crossed 3.3 million. It’s raising hope for the future. The days are getting better. Most of the new taxpayers are young people,” Muhith said.      

He credited a change in the mindset of National Board of Revenue officials for the rise in number of taxpayers. “Harassments have dropped, the process has eased.”

The finance minister reiterated that the budget will offer no provision to legalise undisclosed income.

He said he would outline universal pension scheme in the budget and hinted at lowering interest rates on savings certificates after the budget.

The finance minister also said he plans to cut the number of Value Added Tax slabs from nine to five.

There will be no major changes in corporate tax rates, according to him.