Advance tax on credit card
Sameer Sheikh, Banani, Dhaka
It has been a while that this caretaker government has come to power. The government has done some good things so far. In the last budget the then finance minister imposed tax @ 3% on every transaction made by credit card. Though the tax deducted by this way is adjustable against the yearly tax payable by an assessee while submitting return, but my question is if a person does not earn yearly an income for which he is not supposed to pay tax then what will happen? At present the tax exemption limit of income is BDT:120,000/= and to get a credit card from a bank, a person must earn monthly Tk.10,000/. So his yearly income comes to BDT:120,000/= and he/she does not have to pay tax. Now suppose that person has a credit card and she/he pays 3% tax by using that card. As per rule that person need not to pay any tax but against what the 3% tax paid by him will be adjusted? Currently, when a bank sends a credit card statement with due amount, then it charges 3% tax from clients as per government rule. But when a cardholder does not have enough money, then she/he goes for buying goods with credit card and pay for that later. The banks are keeping silent regarding this issue as it is deducted from their clients. Charging 3% tax on the card has reduced the frequency of credit card. I personally have surrendered on of the cards that I had previously. I would like to request the Chief Adviser & Finance Adviser to withdraw the 3% tax on credit card in the next budget.
|
|
