Update May 11, 2016

Dhaka 11-00 am, 19-September, 2020

Development projects to keep allocation for tax payment

Sumel Sarker

TAX

It’ll come into effect from next fiscal

11 April 2016, Nirapad News: The government’s development projects will have to keep an allocation, by calculating the amount, for payment of tax from the next fiscal year (FY) as per the instruction of Finance Minister A M A Muhith.

The instruction came at a meeting held at Planning Commission in the city on Tuesday with the secretaries of all the ministries and divisions to devise strategies on narrowing down scopes of tax exemption in the government’s development projects.

The meeting, headed by the finance minister, scrutinised proposals of the secretaries on curtailing tax exemption facilities in the development projects.

Responding to the queries to newsmen, Internal Resources Division (IRD) Senior Secretary and National Board of Revenue (NBR) Chairman Md Nojibur Rahman said the finance minister asked the secretaries concerned to prepare projects with calculation of tax amount from the upcoming FY.

The minister also instructed the relevant ministries to come out from the culture of tax exemption.

The meeting sources said the finance minister vowed to improve the country’s tax-GDP ratio by encouraging tax payment culture of both private and public sector entities.

He expressed his firm stand on not providing new tax exemption to thes public development projects in the upcoming FY. As per his instruction, NBR is preparing a policy on tax exemption.

On the government’s plan to have a share on granted taxes to Public Private Partnership (PPP) and joint venture projects as its equity, the NBR chairman said the plan requires further scrutiny.

He said existing tax benefits for the PPP projects will continue.

According to the NBR-prepared draft tax exemption policy, the government agencies will have to pay value-added tax (VAT) and customs duty (CD) on purchase or procurement of goods and services, required at any stage of project implementation, maintenance and operation.

The government’s project-implementing agencies will estimate the total cost of projects by estimating amount of taxes. If required, the Ministry of Finance will provide adequate allocation for the projects to help the agencies pay tax, the draft policy stated.

However, products that will be imported under diplomatic rules and regulations and also under grants for projects and activities related to public welfare will get tax waiver, the policy added.

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