The government has expanded its source tax coverage in the upcoming fiscal year as part of its efforts to meet the ambitious revenue target, a move that will hit the consumers hard.

For instance, bottled water will come under source tax from fiscal 2014-15, meaning its price will go up for end users. Advanced income tax of 5 percent would be slapped on mobile

phone sets, gold and silver at the import stage, which would also raise their prices at the consumer level.

Some 5 percent tax will be deducted on interest earnings on treasury bond, treasury bills and debentures. Travel costs, too, will increase.

"Increasing collection at source is a good step," said Ahsan H Mansur, executive director of Policy Research Institute, adding that the National Board of Revenue had to create scopes

for tax refund, a facility which only the defence officials now enjoy.

Under the new scheme, life insurance companies will have to deduct 5 percent tax on profits in excess of premium.

Land registration will be expensive for increasing tax at source on sales price of land or apartments. Some 4 percent tax will be deductible on deed value. Advertisement on website would involve 3 percent tax at source, while travel agencies will also see 3 percent tax deduction on commission earnings and incentive bonus.

Mobile operators will have to deduct 10 percent tax during payment as revenue sharing, licence fee and spectrum fees to the authorities.

Moreover, the revenue authority will increase the rates in some of the 50-odd areas from which it already collects tax at source.

Owners who rent vehicles such as bus and truck will have to pay more tax at source during registration and fitness renewals. Higher source will be imposed on rental water vessels such as cargo and coaster during registration and fitness renewals.

Quick rental power plant operators will see their deduction of tax increase from 4 percent to 6 percent

against the sales of electricity to Bangladesh Power Development Board.

Petrol pump dealers will see 1 percent cut in earnings at the time of receiving bills from petroleum distribution companies, while petroleum refiners will see 5 percent tax deduction.

Some 3 percent tax will have to be deducted during payment of bills overTk 5 lakh against local letters of credit.

However, some areas will also get rate cuts. The government has waived tax deduction on income of up toTk 5 lakh for pensioner's savings certificates or wage earners developmentbond.

The government also raised tax-free income from dividend earning to Tk 15,000 from present Tk 10,000.