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NBR mulls surcharge

Consults ministries Tuesday

Staff Correspondent
The National Board of Revenue (NBR) is going to consult the ministries concerned on Tuesday on probable areas for imposing surcharges to raise funds for the Padma bridge project.
"We are examining areas for imposing surcharges. But it will be done after considering the views of the stakeholders," NBR Chairman Nasiruddin FROM PAGE 1
Ahmed told a press conference at its headquarters in the capital yesterday.
The tax authority also mulls offering tax rebate for donations to Padma bridge fund, he added.
The conference was organised to review the revenue collection performances in the 2011-12 fiscal year and steps taken to achieve the revenue collection target for the current fiscal year.
The NBR earned Tk 94,447 crore in revenue in the last fiscal year, exceeding its target of92,370 crore.
It started examining scopes to impose surcharges after the cabinet on July 9 decided to start construction of the 6.15-kilometre long Padma bridge with domestic finance.
The decision came after the World Bank (WB) cancelled its SI.2 billion loan agreement for the bridge on “corruption charges.”
The WB along with Jica, ADB and IDB had promised to provide $2.3 billion for the estimated $2.9 billion project.
Following the resignation of former communications minister Syed Abul Hossain from the cabinet early this week, the government now expects the lead financier WB to revise its loan cancellation decision.
Asked whether the surcharge would be required if the WB reverses its decision, the NBR chief said Finance Minister AMA Muhith has asked them to proceed on. "We are looking for options to ensure the surcharges are
tolerable to all."
He, however, noted that if the WB finances the project, tax burden on people would be low.
No sector has been selected yet for imposing the surcharge, mentioned Nasiruddin; but as a new sector, surcharges might be imposed on mobile phone calls.
The experience of surcharge collection for the Bangabandhu Bridge will be a benchmark in this regard, he said.
Sources at NBR said even if the WB agrees to finance the project, the construction cost is likely to rise to Tk 26,000 crore from the present estimate of around Tk 21,000 crore due to the delay.
Under such circumstances, the government will have to bear the additional r costs.
, The bridge is expected to
1 boost economic activities in the south and southwest
i regions.