Confusion over 10pc surcharge | The Daily Star
12:00 AM, June 10, 2011 / LAST MODIFIED: 12:00 AM, June 10, 2011

Over Tk 2cr Asset

Confusion over 10pc surcharge

Under the income tax rate section of the proposed budget, it is mentioned that the government has proposed to impose 10 percent surcharge on the tax payable based on the net wealth above Tk 2 crore.
Noted economist Prof Wahiduddin Mahmud said in principle property tax is justifiable on equity ground, since assets are more unequally divided compared to income.
"But the way the tax has been proposed, it is in effect a surcharge on income tax. The way net asset value is estimated in income tax returns is not very meaningful," he observed.
During Muhith's first stint as the finance minister in 1983, he scrapped the wealth tax saying it only earned Tk 10.5 million in that fiscal year.
Analysts said it is true that the situation in the real estate sector should be addressed properly as prices of land and residential properties are increasing fast. There could be a measure to bring such properties under tax net.
Ahsan H Mansur, executive director of Policy Research Institute, supported wealth tax saying properties have been transferred through generations without paying taxes.
"I strongly endorse imposition of wealth tax for social causes," he insisted.

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