New tax slab for the rich

The National Board of Revenue plans to introduce a new tax slab -- 30 percent -- for individuals in “super income group.”
The new rate will be imposed on those having yearly income of more than Tk 3 crore.
The move aims to reduce the wealth gap between the rich and the poor.
Presently, there are five slabs in the individual income tax category -- 0 to 25 percent.
Under the current rules, yearly income of up to Tk 2.2 lakh is tax-free. Those earning above and up to Tk 10 lakh, pay taxes in three slabs from 10 to 20 percent. And if the income crosses Tk 12.2 lakh, the tax is 25 percent.
In the coming fiscal year, the government also plans to increase the existing surcharge on wealth tax of the super income group, alongside the new slab, said a finance ministry official.
At a pre-budget meeting with the Economic Reporters Forum last month, NBR Chairman Ghulam Hussain said they would collect more tax from the rich in 2014-15 FY.
Asked if the revenue collecting agency can implement the plan, a former NBR official said there has to be strict enforcement for that.
At the moment, importers and the contractors show their income above Tk 3 crore, but other businessmen and professionals hide their income, the official added.  
According to him, for the move to be successful, the NBR with the help of the central bank should make extra efforts so that nobody can hide their real income.
The supplementary duty on cable operators is also likely to be raised, to 400 percent from the existing 25 percent.
The government has been planning to increase the duty following demands of the local TV channel operators.
If raised, monthly subscription fee for consumers will increase manifold.