The New Nation - Internet Edition

UNB, Dhaka

The National Board of Revenue won't stop its hunt for the tax-dodgers notwithstanding the government-declared amnesty for undisclosed money holders for four months in the new budget, as the NBR taxmen are to run after a huge revenue target of Tk 54,500 crore in the coming fiscal year.

"The chase to net tax-evaders will continue and we will go specific way as per information of the Central Intelligence Cell (CIC). We will conduct the drive sector-wise," NBR Chairman Muhammad Abdul Mazid told reporters at a post- budget briefing at his office Sunday.

He said chasing tax-evaders is a continuous process. NBR did that, is doing that and will do that as there were tax- evaders in the country, there are now and the evaders will remain in the future.

The caretaker government, which had launched a crackdown on high-profile pecuniary delinquents in the interim period, took a soft stance for the next fiscal in dealing with those who earned the money by legal means but kept it hidden, to give them one last opportunity to have their stashed money washed white.

By paying a set penalty, the undisclosed money holders will get another four months to make the disclosure. This benefit shall remain in force from July 1, 2008 to October 31, 2008.

The individual taxpayers can declare their undeclared legal income accrued in any year in a prescribed format by paying a penalty at the rate of 7 percent on the tax payable in addition to the regular taxes at the rates applicable for FY 2008-09.

Furthermore, tax-evaders will have to pay another 10 percent for each year of evasion.

"At present, penal actions for detection of undisclosed income are quite elusive and harsh," Finance Adviser Dr Azizul Islam said in his budget speech.

Currently, one is subject to a fine starting from zero to a maximum of five times of the untaxed amount of money.

"I propose to revise the provision of imposing this fine at a fixed rate of 10 percent for each year of evasion," said Dr Aziz, who has set a total revenue target of Tk 69,382 crore in the Tk 99,962-crore budget.

The NBR chairman said that to hook more new taxpayers onto the tax net his office would start the drive in a bigger way from July 1, the commencement of the next fiscal.

"This time we will go to district and upazila levels. Our aim is to establish one office of NBR in each district from where we will conduct our activities down to upazila level," he said.

About the giving of the opportunity to the undisclosed money holders to disclose their money at the rate of 7 percent additional penalty for each year, he said this is an incentive to the tax fugitives. But that does not mean that they are free from any future action by any government agency.

Responding to a question, the NBR chairman said his organization does not apprehend any shortfall of tax collection after six months as there will be an election and a political government will run the government.

"It seems to me the candidates who will contest the election will pay more taxes, we will cash more money from them," he said.

Replying to a query, Mazid said that it would be regretful if the satellite channel distributors increase their charges that ultimately would have to be paid by the viewers.

"It is the matter of negotiation with them and the foreign channel owners-why the general people should be affected," he said.

The budget for 2008-09 proposed to enhance the existing rate of supplementary duty from 15 percent to 35 percent for the satellite channel distributors.

He said that the local satellite TV channels are subject to payment of 15 percent VAT on the commercials telecast on their channels whereas the foreign TV channels pay no VAT on commercials that are telecast in Bangladesh.

"Although these commercials are not directly targeted towards our local consumers, but they indirectly help in creating import demands for commodities shown on these commercials."

Moreover, he said, different programs, including foreign movies, are freely being shown on various local and foreign TV channels through satellite.

The proprietors or distributors of foreign TV channels are not paying the VAT applicable for commercials that are telecast on their channels, depriving the government of its fair share of revenue, he added.