Govt mulls higher taxes to curb fake fish farming claims
High earners from poultry and fish hatchery along with fish farming will probably lose the privilege of tax reductions from fiscal 2021-22 mainly because the government programs to introduce a fresh slab to accumulate more taxes from poultry and fish farming entrepreneurs.
Taxpayers earning above Tk 30 lakh annual may require to pay 15 % tax from today's 10 %, said finance ministry officials.
The hike in the top income bracket comes as the National Plank of Income (NBR) looks to improve tax collection for the next fiscal year and curb scopes of evasion.
There is an allegation a section of individuals show more significant incomes from aquaculture to take pleasure from reduced tax benefits in fish farming which the government offers to encourage employment and increase availability of fish protein.
In a letter to the NBR in January this year, the Anti-Corruption Commission (ACC) asked to verify income sources shown by many taxpayers in their returns, including poultry and fish farming.
Until recently, incomes of up to Tk 10 lakh from fishery, shrimp and poultry hatchery and fish farming had been tax-free.
Only 5 % tax is payable in another Tk 10 lakh in income. On twelve-monthly incomes of over Tk 20 lakh, only 10 per cent is payable as taxes, whereas the best rate of tax for a person is 25 per cent.
The tax authority introduced the concessional tax fee first in July 2013 for just two years to inspire diversification and increase production of fish to handle nutrition deficiency in the united states.
The original concession was 3 % tax on any amount of income from seafood farming. But some businesspeople, politicians and actually authorities officials abused the privilege, said taxmen earlier.
The abuse was tricky to get as it is challenging to assess fish shares in ponds, which made it easy for corrupt people to case any amount of income from fish farming.
And the abuse went so far as people who didn't even own fish farms were claiming income from the business to evade taxes, said taxmen.
To curb the malpractice, the NBR scrapped the reduced tax charge for the sectors by the finish of 2014 nonetheless it had to reinstate the privilege from July 1, 2015 when confronted with pressure from various curiosity groups.
Now, the financing ministry officials explained they want to gather tax from high cash flow earners of the sectors.
"We are not likely to impose any new taxes burden on tiny and medium fish farmers," he said.
On the other hand, Md Tariqul Islam Zaheer, managing director of Shundarban Shrimps, a semi-intensive shrimp farm at Dakop, Khulna, said fish farmers have problems with losses for elements, including natural calamities.
"However we can not realise our investment simply because we don't get any insurance plan," he said.
"It will be frustrating for real fisheries entrepreneurs just like us. Most of us are remarkably indebted for losses for natural calamities and low earnings. At this moment, a hike in the tax fee will affect us."
He suggested the taxes authority increase supervision to curb fraudulence tries at evading tax.
Over the past 2 decades, Bangladesh saw an enormous expansion of aquaculture to meet up increasing demand for fish for population growth and increasing incomes.
Aquaculture region doubled to 8.21 lakh hectares in fiscal 2018-19 from 4.12 lakh hectares in fiscal 2001-02.
Development grew threefold to 24.88 lakh tonnes the fiscal 2018-19 from 7.86 lakh tonnes in fiscal 2001-02, showed info from the Section of Fisheries.
Cultured fish accounted for 57 % of the 43.88 lakh tonnes of fish stated in fiscal 2018-19. The ratio was 42 % in fiscal 2001-02.
