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JS body for tax holiday

Recommends expanding tax net at upazila-union level; Muhith still against continuing tax holiday

Rashidul Hasan
The parliamentary standing committee on finance ministry has recommended continuing the existing tax holiday facility with some conditions in the budget for next fiscal year.
It also recommended expanding the tax net at upazila and union levels by involving local lawmakers and other public representatives in identifying prospective taxpayers including small grocers. And it suggested cutting the rate of taxes in the next budget.
The standing committee made the recommendations after discussing all aspects, its Chairman AHM Mostafa Kamal told reporters following a committee meeting at the Jatiya Bhaban yesterday.
The House body came up with these suggestions while Finance Minister AMA Muhith
yesterday told journalists, "In my opinion, tax holiday facility should not be continued. Now, the cabinet is to decide on this."
Mostafa Kamal said, "Tax holiday should continue in view of the global meltdown, and consequent pressure on the national economy."
Replying to a question, he said the House committee suggested tax holiday for some priority sectors like agriculture, IT and service sector.
"We can also ask new entrepreneurs to invest in less developed areas by offering them tax holiday facility," he added.
The committee chief said they also suggested continuing the opportunity of whitening black money subject to some conditions.
The House body favoured raising the limit of tax-free income to Tk 2 lakh.
"A small grocer at union level can pay Tk
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2,000 in tax a year if he is properly motivated," he said in reply to a question.
The committee asked the finance ministry to take measures to implement its suggestions. Mostafa Kamal said.
Earlier on May 15, the finance minister the government was planning to cancel tax holiday scheme in the next fiscal year.